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Nordic IT giants Tieto and Evry agree merger

Source: Tieto

Tieto and EVRY have today announced a merger agreement to create one of the most competitive digital services and software companies in the Nordics.

With combined revenue of close to EUR 3 billion and 24 000 professionals, the combined company will be wellpositioned to create digital advantages for Nordic enterprises and society. The transaction will be highly complementary from a geographical, offering and customer perspective. The combined company will be named TietoEVRY and it will serve thousands of enterprise and public sector customers in more than 90 countries.

Tieto and EVRY have rich and complementary capabilities in areas of digital consulting, industry software, advanced cloud and infrastructure services. The combination brings a strong value proposition with advanced Fintech solutions for customers' industries globally . Furthermore, the combined company is anticipated to have comprehensive IT-services solutions for Nordic markets, including for healthcare and welfare as well as the public sector, in which extensive national reforms are expected.

With more than 5 000 digital consultants with deep customer knowledge in the Nordics and around 10 000 globally, the new company is set to accelerate its customers digital transformation. The new company will be one of the largest employer in digital services and software in the Nordics.

A strong presence in Norway, Sweden and Finland together with global delivery centers, provide a good foundation for future growth; Fintech solutions, industry software and product development services form the spearheads for further international expansion. With the combined capacity to invest in new services and capabilities, the combination is well positioned to drive innovation.

“This combination announced today will create a company well-positioned to facilitate digital transformation across the Nordics for the benefit of our customers, employees, shareholders and society. With continued investments in our people, latest technologies such as robotics, cloud and artificial intelligence, the combination will create a competitive digital partner for our customers. We have a strong cultural foundation based on Nordic values with upmost respect for every individual
and focus on life-long learning. I believe we will create exciting opportunities for professional and personal growth for employees in both companies – and a strong value proposition for our customers. Together we have the opportunity to accelerate the pace of change and innovation in the industry and bring the benefits of the digital world to our customers faster and more effectively. I foresee a very exciting journey ahead”, says Kimmo Alkio, President and CEO.

“During the last few years, EVRY has taken important steps and become a preferred partner for digital transformation to our customers. EVRY and Tieto share strong Nordic values promoting  openness, trust and diversity. I believe that the new company will attract the right competence, customers and partners,” says Per Hove, CEO of EVRY.

It will be proposed to the EGM that Tomas Franzén will chair the Board of Directors of the combined company. Following the completion of the merger, Kimmo Alkio will be Chief Executive Officer of the combined company. Per Hove will continue in his role as CEO of EVRY until the closing of the transaction and work closely with Tieto CEO Kimmo Alkio in the integration of the companies.

The new company will have its headquarters in Espoo, Finland. The corporate and management functions will be distributed across Oslo, Stockholm and Espoo,

Following completion of the merger the shares in the combined company will continue to be listed on the official list of Nasdaq Helsinki and Nasdaq Stockholm. In addition, an application for listing on Oslo Børs will be made.

The transaction is subject to approval by the shareholders of both companies and the competition authorities. It is expected that the merger will be completed during the fourth quarter of 2019, or during the first quarter of 2020 at the latest.  

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