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.
Tietoevry considers floating banking unit
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 recognising 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 €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, the view is the Banking unit would achieve more as an independent entity.
This would also enable Tietoevry to improve the strategic focus of the Group and realise the value of its businesses, whilst accelerating the growth of Tietoevry Banking.
“We are announcing a key decision to take our strategy forward. Tietoevry Banking offers highly competitive software and platforms for Nordic and global financial institutions,” comments Kimmo Alkio, President and CEO.
“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.”
The separation of the Banking business from the Tietoevry Group will require a carve out process that is expected to be completed in H2 2023.
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