Tieto (HEX:TIE1V)(STO:TIEN) has signed an agreement to acquire Emric, the Nordic market leader in software and services for credit processing.
The acquisition will strengthen Tieto’s position as a business renewal partner for Nordic financial services customers. It is expected to contribute to both the company’s ambition to accelerate its scalable software business and progress towards its profitability targets.
The transaction supports the company’s financial services business expansion in the Nordic countries and internationally. Furthermore, it accelerates Tieto’s Banking as a Service offering through new competencies and software products within loan origination, lending and leasing.
“The acquisition will further strengthen our software-based business in the attractive modernization market in the Nordic countries and Europe. With our combined offerings we can provide the full value chain to our Nordic banking and finance customers within retail banking and consumer finance markets. We warmly welcome our new colleagues from Emric to Tieto in our common mission to accelerate innovation and value for customers”, says Per Johanson, Executive Vice President, Financial Services, Tieto.
“We are very excited to join forces with Tieto. By combining Tieto’s capabilities and strong presence with Emric’s market leading lending and leasing products and services, we will further strengthen our joint customer value proposition”, says Pedram Tadayon, CEO of Emric.
In 2015, Emric’s net sales amounted to SEK 185 million (EUR 19.5 million). In 2015, approximately 65% of its net sales came from Sweden and the rest from Finland, Norway, Denmark, Iceland and other European countries. Tieto expects the Emric acquisition to be accretive to the company’s growth and profit targets as from 2017. Emric has offices in Stockholm, Kalix and Belgrade, with around 200 employees.
The acquisition has been completed. The up-front acquisition price, paid in cash at the closing, is based on Enterprise Value (EV) of SEK 300 million. Additionally, the parties have agreed on an earn-out model based on Emric’s performance during 2017 and 2018.
Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers’ first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems.