Finland's Tieto in £1.2 billion deal to buy Nordic peer Evry

Finland's Tieto in £1.2 billion deal to buy Nordic peer Evry
Finnish company Tieto sign is seen at their headquarters in Espoo, Finland July 17, 2018. Picture taken July 17, 2018. REUTERS/Ints Kalnins -
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INTS KALNINS(Reuters)
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OSLO (Reuters) – 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 two companies announced on Tuesday.

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, they 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, they added.

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.

The largest owners of the merged firm will be private equity firm Apax Partners with 20.4% and activist fund Cevian Capital with 9.4%.

(Reporting by Terje Solsvik, editing by Gwladys Fouche)

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