OSLO, NORWAY: Tietoevry has halted the demerger process of its Banking business, initially set in motion on July 22, 2022. The company had previously considered transforming its Banking division into a standalone entity to be listed on the stock exchange. However, on February 15, 2024, Tietoevry’s Board of Directors approved a demerger plan, while also keeping other options on the table for Tietoevry Banking’s future.
The Board has now decided to cease the demerger and instead focus on nurturing Tietoevry Banking as a specialized unit within the Group. This decision stems from the belief in their specialization strategy, which aims to run each business end-to-end, positioning them as leaders in the market. Tietoevry Banking has shown significant progress and consistent performance improvements, reinforcing its trajectory towards becoming a top fintech software business.
Current capital market conditions have also influenced this decision, as they are not favorable for the sale or listing of a fintech software business. Tietoevry projects that it can enhance the value of Tietoevry Banking by continuing to refine its performance within the Group’s specialized framework. The business is strategically poised for future value creation opportunities.
Tomas Franzén, Chairperson of Tietoevry’s Board of Directors, remarked, “The strategic review process for Tietoevry Banking, initiated in 2022, has been thorough and deliberate, aiming to maximize the business’s value potential. After considering all alternatives, we believe it is in the shareholders’ best interest for the business to progress as a specialized entity within the Group. We have a strong conviction in the long-term value generation capabilities of Tietoevry Banking.”
Kimmo Alkio, CEO of Tietoevry, added, “Our commitment to enhancing the competitiveness and scale of our specialized businesses remains unwavering. Over the past two years, Tietoevry Banking has successfully adopted this specialization mandate and has shown commendable performance. The strategic review has furthered its operational independence, and we are excited to continue its development. We are confident in Tietoevry Banking’s journey towards becoming a leading international fintech software business, consistently increasing shareholder value.”
The decision underscores Tietoevry’s strategic pivot towards internal development and specialization, signaling a robust confidence in the Banking business’s future within the Group’s ecosystem.