Finnish software firm Tieto and Norwegian consultancy Evry said they have agreed to merge to form a digital services and software company with combined revenue of nearly EUR 3 billion and a workforce of 24,000 people. The combined company will be named TietoEvry and it will serve thousands of enterprise and public sector customers in more than 90 countries.
TietoEvry will provide software, cloud, infrastructure, financial technology, medical and welfare services. This comes at a time when extensive national reforms are expected in the public sector. It will have more than 5 000 digital consultants in the Nordic region and around 10,000 globally.
The merged company will have a strong presence in Norway, Sweden and Finland. With the combined capacity to invest in new services and capabilities, the combination is well positioned to drive innovation, the two parties said.
It will be proposed to the EGM that Tomas Franzen will chair the board of directors of the combined company. Kimmo Alkio will be CEO of the combined company. No date was given for the EGM. Per Hove will continue as CEO of Evry until the closing of the transaction.
The new company will have its headquarters in Espoo in Finland. The corporate and management functions will be distributed across Oslo, Stockholm and Espoo. Following completion of the merger, the shares of the combined company will still be listed on the official list of Nasdaq Helsinki and Nasdaq Stockholm. In addition, an application for listing on Oslo Bors 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.
