Tietoevry Initiates Review of Banking Business to Tap “Full Value” Potential of Operations

Tietoevry has decided to initiate a strategic review of Tietoevry Banking, including a process “to study the potential separation into an independent company that would be listed on a stock exchange.”

The aim is “to accelerate growth profile, scale and profitability of Tietoevry Banking, and enhance its strategic and financial flexibility to drive value creation for all stakeholders.”

Current shareholders of Tietoevry would also “benefit from capital markets recognizing the full value of the Banking business.”

The financial services software market “is fast evolving globally with a high focus on SaaS, interoperable solutions, and data-driven platforms.”

Today, Tietoevry Banking comprises “a portfolio of software including Banking-as-a-Service, Cards, Payments and Credit.”

The business has “an annual revenue of close to EUR 500 million and around 3 600 experts serving more than 400 customers globally.”

Given its market position in the Nordics, competitive global software assets and proven performance, Tietoevry Banking “would achieve more as an independent entity.” This would also “enable Tietoevry to improve the strategic focus of the Group and realize the value of its businesses, whilst accelerating the growth of Tietoevry Banking.”

Kimmo Alkio, President and CEO, said:

“We are today announcing a key decision to take our strategy forward. Tietoevry Banking offers highly competitive software and platforms for Nordic and global financial institutions. As an independent entity, we believe that the business would have higher focus, build a clear financial services software identity to attract the best talent and enhance the value to its customers. This would potentially unlock further value for Tietoevry shareholders.”

The separation of the Banking business from the Tietoevry Group “will require a carve out process that is expected to be completed in the second half of 2023.”

Should the listing assessment proceed favourably, Tietoevry aims “to subsequently list the Banking business in the second half of 2023. Further details about the progress will be provided in due course.”

While no decisions have been taken, the separation “remains fully subject to market conditions at the time of the demerger, including but not limited to the prevailing macroeconomic conditions and sentiment amongst equity investors at the time of the potential listing.”

As noted in the update, Tietoevry “creates purposeful technology that reinvents the world for good.”

They claim to be “a leading technology company with a strong Nordic heritage and global capabilities.” Based on their core values of openness, trust and diversity, they work with their customers “to develop digital futures where businesses, societies, and humanity thrive.”

Their 24 000 experts globally “specialize in cloud, data, and software, serving thousands of enterprise and public-sector customers in more than 90 countries.”

Tietoevry’s annual turnover “is approximately EUR 3 billion and the company’s shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs.”

Sponsored Links by DQ Promote



Send this to a friend