Inside information: Tietoevry initiates a strategic review of its Tietoevry Transform and Tietoevry Connect as a combined business

30 Nov 2022 07:00 CET

Tietoevry Corporation     INSIDE INFORMATION    30 November 2022, 08:00 a.m. EET

Tietoevry aims to unlock value by separating its managed services and
transformation businesses (Tietoevry Transform and Tietoevry Connect) and
software and digital engineering businesses (Tietoevry Create, Tietoevry
Banking, Tietoevry Care and Tietoevry Industry). Tietoevry is initiating a
process to evaluate strategic opportunities for the combined Tietoevry Transform
and Tietoevry Connect businesses including a potential sale or listing as a spin
-off.

On a standalone basis, the combined Tietoevry Transform and Tietoevry Connect,
would be a competitive Nordic managed services and transformation player,
serving more than 1 000 Nordic enterprises and the public sector customers. The
combined annual revenue of the two businesses is around EUR 1.2 billion and they
have approximately 8 700 employees globally. These businesses will be combined
and organized under one leadership team dedicated to executing a common
strategy, leveraging the best-in-class capabilities of both businesses.
Tietoevry will create a standalone legal structure for the combined Tietoevry
Transform and Tietoevry Connect businesses, providing increased structural
independence from the Tietoevry Group. The combined Tietoevry Transform and
Tietoevry Connect will drive dedicated focus on managed services and
transformation offerings across applications, infrastructure and cloud.

The IT services market is going through a major transformation, as traditional
applications and infrastructure are being actively transformed to new cloud
-native technologies and services. The change is impacting and creating
opportunities for all players in the market covering software, digital
engineering and managed services with outsourcing foundation. The success of
businesses with an outsourcing foundation relies on the scale of capabilities
and infrastructure volumes needed to drive customers' continuous efficiency,
agility and modernization needs. The combination of Tietoevry Transform and
Tietoevry Connect, would be better positioned to achieve higher scale, building
on its competitive Nordic market position, large enterprise customer base,
competitive services, and global delivery capability. The potential separation
of the businesses from the Tietoevry Group would better enable the combined
business to participate in industry consolidation.

The intended actions will accelerate Tietoevry's strategy implementation,
positioning the company as a software and digital engineering business. The
software and digital engineering businesses have a combined annual revenue of
around EUR 1.7 billion and approximately 16 000 employees with global reach.

"Today we announce a major step in our strategy implementation. We are
reconfiguring our portfolio for clear identity and higher shareholder value, by
separating managed services and transformation businesses and software and
digital engineering businesses. Through the separation, businesses will become
more competitive and accelerate value creation. We believe that the planned
actions create better outcomes to all stakeholders," says Kimmo Alkio, President
and CEO.

The strategic review of the combined Tietoevry Transform and Tietoevry Connect
and subsequent potential sale or listing as spin-off is expected to take 12-18
months. The strategic review does not 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 listing as a spin-off remains
subject to market conditions, including but not limited to the prevailing
macroeconomic conditions and investor sentiment.

For further information, please contact:

Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen
(at) tietoevry.com
Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288,
tommi.jarvenpaa (at) tietoevry.com
Kia Haring, Head of Communications, tel. +358 40 765 3700, kia.haring (at)
tietoevry.com

Read more about Tietoevry Transform (https://www.tietoevry.com/en/transform) and
Tietoevry Connect (https://www.tietoevry.com/en/connect).

Tietoevry Corporation

DISTRIBUTION

NASDAQ Helsinki
NASDAQ Stockholm
Oslo Børs
Principal Media

Tietoevry creates purposeful technology that reinvents the world for good. We
are a leading technology company with a strong Nordic heritage and global
capabilities. Based on our core values of openness, trust and diversity, we work
with our customers to develop digital futures where businesses, societies, and
humanity thrive.

Our 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. www.tietoevry.com

More information:
Access the news on Oslo Bors NewsWeb site

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