OSLO, NORWAY: Tietoevry goals to unlock worth by separating its managed services & transformation companies and software program & digital engineering businesses.
The managed services and transformation companies comprises of Tietoevry Transform and Tietoevry Connect, whereas software program and digital engineering companies comprise of Tietoevry Create, Tietoevry Banking, Tietoevry Care and Tietoevry Industry.
Tietoevry is initiating a course of to consider strategic alternatives for the mixed Tietoevry Transform and Tietoevry Connect companies together with a possible sale or itemizing as a spin-off.
On a standalone basis, the mixed Tietoevry Transform and Tietoevry Connect, would be a aggressive Nordic managed services and transformation player, serving greater than 1 000 Nordic enterprises and the general public sector customers.
The mixed annual income of the 2 companies is round EUR 1.2 billion and they’ve roughly eight 700 employees globally. These companies will be mixed and arranged under one management team devoted to executing a common strategy, leveraging the best-in-class capabilities of each businesses.
Tietoevry will create a standalone authorized construction for the mixed Tietoevry Transform and Tietoevry Connect businesses, offering elevated structural independence from the Tietoevry Group. The mixed Tietoevry Transform and Tietoevry Connect will drive devoted focus on managed services and transformation choices throughout applications, infrastructure and cloud.
The IT services market goes through a main transformation, as conventional applications and infrastructure are being actively transformed to new cloud-native applied sciences and services. The change is impacting and creating alternatives for all gamers within the market covering software, digital engineering and managed services with outsourcing foundation.
The success of companies with an outsourcing basis depends on the scale of capabilities and infrastructure volumes wanted to drive customers’ steady efficiency, agility and modernization needs.
The mixture of Tietoevry Transform and Tietoevry Connect, would be higher positioned to obtain higher scale, constructing on its aggressive Nordic market position, large enterprise buyer base, aggressive services, and global supply capability.
The potential separation of the companies from the Tietoevry Group would higher allow the mixed enterprise to take part in industry consolidation.
The intended actions will speed up Tietoevry’s technique implementation, positioning the corporate as a software program and digital engineering business. The software program and digital engineering companies have a mixed annual income of round EUR 1.7 billion and roughly sixteen 000 employees with global reach.
“Today we announce a main step in our technique implementation. We are reconfiguring our portfolio for clear identity and higher shareholder value, by separating managed services and transformation companies and software program and digital engineering businesses.
Through the separation, companies will become extra aggressive and speed up worth creation. We believe that the deliberate actions create higher outcomes to all stakeholders,” says Kimmo Alkio, President and CEO.
The strategic review of the mixed Tietoevry Transform and Tietoevry Connect and subsequent potential sale or itemizing as spin-off is anticipated to take 12-18 months. The strategic review doesn’t impact Tietoevry Create, Tietoevry Care, Tietoevry Industry or Tietoevry Banking business, nor the ongoing strategic review of Tietoevry Banking.
While no decisions have been taken, any sale or itemizing as a spin-off stays topic to market conditions, together with however not restricted to the prevailing macroeconomic conditions and investor sentiment.