Employee pension IT company, Esy Oy, and its shareholders have agreed on the start of a close co-operation deal with TietoEnator.
TietoEnator will hold 80% of Esy's share capital. The current shareholders will retain decision-making power within the company. The objective of the co-operation deal is to create a broader technology, skills and resources base in order to develop new business operations and customer services. The new arrangement will become effective at the beginning of January 2006. The negotiations on the co-operation agreement were made public in June 2005 (link to release published on 6 June 2005).
Due to the ownership arrangement the new company name will be TietoEnator Esy Oy. The company employs over 180 persons and its turnover in 2005 is estimated to be around €22 million. The company is expected to show a profit in 2006. Eighty per cent of the company will be consolidated with TietoEnator.
TietoEnator will hold 80% of the company's share capital. The remaining shareholdings are Varma Mutual Pension Insurance Company 14.4%, Mutual Insurance Company Pension-Fennia 4%, Veritas Pension Insurance Company 1.4% and Henki-Sampo Insurance Company 0.2%.
The number of votes will be distributed as follows: TietoEnator 34%, Varma 50.1%, Pension-Fennia 10.9%, Veritas 4.2% and Henki-Sampo 0.8%.
Aaro Mutikainen of TietoEnator will be appointed President and CEO. Esy's long-standing CEO Jorma Nikunen will retire.
"The development of Esy requires the participation of a strong expert in technology in order to implement Esy's customers' challenging projects. This arrangement ensures high-quality system services for Esy's customers long into the future," states Ilkka Kohonen, Development Chief, Varma Mutual Pension Insurance Company and Chairman of the Board of Esy Oy.
"The pensions industry is one of TietoEnator's key speciality fields, where we already hold a strong position. With this expanding co-operation we can utilise our expertise in both the pensions industry and network services. I am convinced that the co-operation will also create considerable benefits for our already well-known Esy customer base," says Seppo Haapalainen, Senior Vice President, TietoEnator Banking & Insurance.