Tieto acquires Norway-based Software Innovation to accelerate its role as the leading digitalization advisor in the Nordic countries

Tieto Corporation         STOCK EXCHANGE RELEASE         25 June 2015 at 9.00
EET

Tieto has signed an agreement to acquire Software Innovation, a leading software
company in the Enterprise Content Management (ECM) business in the Nordic
countries. The acquisition will strengthen Tieto’s position as the preferred
digitalization partner by increasing its capabilities in enterprise content
management across the Nordic countries. The transaction supports the Group’s
objectives of accelerating profitable growth as it strengthens Tieto’s presence
in Norway and expands the company’s scalable software-driven business.

Software Innovation is a recognized market leader across the Nordic countries in
enterprise content management in both the public and private sectors. The
company has consistently gained market share and delivered solid profitability.
Software Innovation has approximately 350 employees, and in 2014 the company’s
net sales amounted to around NOK 364 million (EUR 41 million) and operating
margin (EBIT) to 12.5%. Currently, around 75% of its sales come from Norway and
the rest mainly from Sweden and Denmark. The public sector represents around 70%
of sales, with the remainder accounted for by large and mid-size enterprises.

"The acquisition of Software Innovation is important to Tieto as this increases
our ability to speed up our customers’ digitalization across Nordic countries
and provides attractive growth opportunities. This strengthens our role,
especially in the public sector, as the leading advisor in the cross section of
business processes and new technologies. We warmly welcome our new colleagues
from Software Innovation to Tieto in our common pursuit of accelerating Tieto’s
wide-ranging renewal, innovation and growth," says Kimmo Alkio, President and
CEO, Tieto.

"I am excited about the opportunity for us to combine Software Innovation’s and
Tieto’s strengths in the Nordic information management market. Due to this
acquisition we will be able to deliver leading-edge efficiency improvement
through standardized content management solutions across all Nordic countries.
 Furthermore, this acquisition provides us with an immediate opportunity to
expand in Norway also through our standard services, e.g. cloud services and
application management,” says Håkan Dahlström, Executive Vice President, Public,
Healthcare and Welfare, Tieto.

"I am convinced we will create added value for our joint customers and
accelerate digitalization in a broader market. There will be good opportunities
for our existing and new customers to utilize Tieto’s global delivery and the
full scale of competencies in the Nordic countries. I believe that our employees
and customers have much to look forward to as Software Innovation becomes part
of a larger company,” says Torstein Harildstad, CEO of Software Innovation. Mr
Harildstad will continue to be responsible for the Software Innovation business
at Tieto.

As a result of the acquisition, Tieto’s market share in the Nordic enterprise
content management business, worth about EUR 350 million, will increase from its
current level of around 7% to some 20%. In addition, Tieto sees attractive
opportunities to provide Tieto’s broad set of services covering outsourcing,
consulting and system integration, as well as other Tieto software products. The
acquisition is subject to approval by the Norwegian competition authority and
the closing of the agreement is anticipated to take place during autumn.

Based on the acquisition price of NOK 610 million, Enterprise Value (EV) of
Software Innovation is estimated to amount to NOK 623 million. The acquisition
price will be paid in cash in connection with the closing. The transaction is
estimated to be value accretive to Tieto.

Additional information related to the acquisition is available at
www.tieto.com/investors/ir-news


For further information, please contact:
Kimmo Alkio, President and CEO, tel. +358 2072 010

Investors:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen (at)
tieto.com

Media:
Kia Haring, Head of Global Communications, tel. +358 40 765 3700,
kia.haring(at)tieto.com

Software Innovation:
Torstein Harildstad, CEO, Software Innovation, tel: +47 90826019

Danske Bank has acted as Tieto’s financial advisor for the transaction.

TIETO CORPORATION

DISTRIBUTION
NASDAQ Helsinki
NASDAQ Stockholm
Principal Media

Tieto is the largest IT services company in the Nordics providing full lifecycle
IT services. We also provide global product development services for companies
in the communications and embedded technologies arena. Through industry insight,
technology vision, and innovative thinking, Tieto proactively strives to inspire
and engage our customers in finding new ways of accelerating their business.

Building on a strong Nordic heritage, Tieto combines global capabilities with
local presence. Headquartered in Helsinki, Finland, Tieto has over 13 000
experts in more than 20 countries. Turnover is approximately EUR 1.5 billion.
Tieto’s shares are listed on NASDAQ in Helsinki and Stockholm. www.tieto.com

Software Innovation helps organizations manage, share and use information as
their most valuable resource. We have 30 years of expertise and experience in
developing modern, user-friendly IT solutions that improve and streamline
records management, case management and technical document control. Software
Innovation is recognized as a leading international actor by companies like
Gartner and Microsoft, and our solutions are used by over 700 organizations and
200 000 users. Software Innovation has 350 employees with offices in Copenhagen,
Stockholm and Bangalore, and is headquartered in Oslo.