TietoEVRY (TIETOS) M&A Announcement summary

Deal rationale and strategic fit

• Divestment accelerates transformation into a focused international software and digital engineering company, aligning with the strategy to maximize shareholder value and enable higher growth and asset-light operations.

• Specialization positions the company as a leading software and digital engineering provider, supporting international expansion.

• Tech Services will leverage its Nordic leadership to expand managed services and transformation offerings under new ownership.

Financial terms and conditions

• Sale price is EUR 300 million, including EUR 70 million in earn-out payments based on 2026 and 2027 performance, payable as vendor loans.

• Purchase price subject to customary net debt and working capital adjustments at closing.

• EUR 100 million in lease liabilities will transfer with the business.

• Proceeds will primarily be used to reduce debt, with potential for capital distributions to shareholders.

Synergies and expected cost savings

• Transaction expected to reduce capital intensity, working capital, and CapEx by approximately 40%.

• Significant reduction in cash restructuring charges and improved free cash flow.

• Group adjusted EBITA margin to increase by about 1.2 percentage points.

• Improved SG&A ratio anticipated post-transaction due to simplified operations.