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Finland's Tieto to give £1.2 billion for Nordic peer Evry

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Christian Fernsby ▼ | June 18, 2019
Finland's Tieto
Acquisition   The proposed combination will create a digital consultancy with 24,000 employees

Finnish technology firm Tieto has agreed to pay 13.2 billion Norwegian crowns (£1.2 billion) in cash and shares for Norwegian competitor Evry.

The proposed combination will create a digital consultancy with 24,000 employees and annual revenues of nearly 3 billion euros, offering software, cloud solutions, robotics and other services.

"The foundation of the merger is based on highly complementary businesses in Norway, Finland and Sweden," the companies said in a joint statement.

The agreed offer, representing a 15.4% premium over Evry's last traded share price, will give the Norwegian firm's owners a 37.5% stake in the new company and a total cash consideration of approximately 200 million euros.

Tieto and Evry aim to reduce costs by some 75 million euros annually via layoffs and other cuts, most of which will be achieved by the end of 2022.

"The companies estimate that non-recurring implementation costs, anticipated to materialize by 2022 will amount to 120-140 million euros," they added.


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