Target Information

Tietoevry Corporation, a prominent player in the global software and digital engineering industry, has strategically decided to divest its Tietoevry Tech Services business. This divestment aligns with the company’s efforts to streamline its operations and focus on its core vertical software and digital engineering sectors. The company officially completed the transaction on September 2, 2025, with Agilitas Private Equity LLP acquiring the business for an agreed purchase price of EUR 300 million. This includes EUR 70 million contingent upon achieving specific performance milestones in 2026 and 2027, along with the transfer of lease liabilities totaling approximately EUR 98 million.

Industry Overview in Finland

Finland's software and digital engineering industry is witnessing robust growth driven by digital transformation across various sectors. As companies increasingly adopt advanced technologies such as AI, cloud computing, and data analytics, the demand for specialized software solutions has surged. The competitive landscape is characterized by a mix of established enterprises and emerging startups, all vying for innovation in software development and IT services.

In recent years, Finland has positioned itself as a hub for tech talent and innovation. With a strong emphasis on education and research, the country fosters a conducive environment for tech companies, making it an attractive destination for investment. This supportive climate enhances collaboration between the private sector and academia, further driving the growth of digital solutions.

Moreover, Finnish businesses are emphasizing sustainability and efficiency in their digital strategies, prompting a shift towards more advanced software systems. The sector shows promising opportunities for growth, as organizations seek to enhance their operations through cutting-edge technology solutions, emphasizing the need for agile and specialized service providers.

Rationale Behind the Deal

The decision to divest the Tech Services business is part of Tietoevry's strategic transformation into a leading market-oriented software and digital engineering company. By focusing on its core sectors, which include Banking, Care, and Industry, as well as its digital engineering services, Tietoevry aims to concentrate resources and efforts on areas with the greatest growth potential. The production of measurable value through advanced software solutions and digital consulting remains paramount for the company's future strategies.

The transaction also serves to bolster Tietoevry’s financial position by reducing outstanding debt through the proceeds from the sale. This move allows the company to invest more effectively in its strategic priorities and reinforce its competitive stance in the software and digital engineering markets.

Investor Information

Agilitas Private Equity LLP, the acquiring party in this transaction, is known for its strategic investments in technology and software sectors. With a focus on value creation, Agilitas leverages its experience and expertise to enhance the performance of its portfolio companies. Their approach often encompasses operational improvements and growth initiatives, which aligns with Tietoevry’s objectives to maximize the value of its operations post-divestment.

Agilitas's track record in managing technology investments positions them as a strategic partner capable of navigating the rapidly evolving digital landscape. This background suggests that the acquisition will likely benefit from their extensive network and resources in the technology sector.

View of Dealert

The divestment of Tietoevry's Tech Services business appears to be a strategic maneuver that could yield significant benefits. By refocusing on its core software and digital engineering segments, Tietoevry can better allocate its resources toward high-potential areas, ultimately enhancing its overall market competitiveness. Such divestitures can often lead to improved operational efficiency and financial strength, which seems to be a primary goal of this transaction.

Furthermore, the financial arrangement of the deal, including the earn-out payments based on future performance milestones, indicates confidence in the growth potential of the business, suggesting that Tietoevry is offloading operations that can still provide value with the right management. If Agilitas can successfully leverage the capabilities of the Tech Services business and deliver on its performance metrics, this could turn into a win-win for both parties.

Overall, this deal reflects a broader trend of consolidation and specialization within the technology sector. By strategically aligning its operations, Tietoevry is positioning itself to navigate the increasing complexities of the digital marketplace, making this transaction a potentially wise investment for the long term.

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