Tieto strengthens its position as a business renewal partner for financial services customers – acquires Emric


Tieto has signed an agreement to acquire Emric, the Nordic market leader in
software and services for credit processing. The acquisition will strengthen
Tieto’s position as a business renewal partner for Nordic financial services
customers. It is expected to contribute to both the company’s ambition to
accelerate its scalable software business and progress towards its profitability
targets.
The transaction supports the company’s financial services business expansion in
the Nordic countries and internationally. Furthermore, it accelerates Tieto’s
Banking as a Service offering through new competencies and software products
within loan origination, lending and leasing.

“The acquisition will further strengthen our software-based business in the
attractive modernization market in the Nordic countries and Europe. With our
combined offerings we can provide the full value chain to our Nordic banking and
finance customers within retail banking and consumer finance markets. We warmly
welcome our new colleagues from Emric to Tieto in our common mission to
accelerate innovation and value for customers”, says Per Johanson, Executive
Vice President, Financial Services, Tieto.

“We are very excited to join forces with Tieto. By combining Tieto’s
capabilities and strong presence with Emric’s market leading lending and leasing
products and services, we will further strengthen our joint customer value
proposition”, says Pedram Tadayon, CEO of Emric.

In 2015, Emric’s net sales amounted to SEK 185 million (EUR 19.5 million). In
2015, approximately 65% of its net sales came from Sweden and the rest from
Finland, Norway, Denmark, Iceland and other European countries. Tieto expects
the Emric acquisition to be accretive to the company’s growth and profit targets
as from 2017. Emric has offices in Stockholm, Kalix and Belgrade, with around
200 employees.

The acquisition has been completed. The up-front acquisition price, paid in cash
at the closing, is based on Enterprise Value (EV) of SEK 300 million.
Additionally, the parties have agreed on an earn-out model based on Emric’s
performance during 2017 and 2018.

For further information, please contact:
Per Johanson, Executive Vice President, Tieto Financial Services and Country
Manager, Tieto Sweden, mobile:  +46 768 21 2029, per.johanson(at)tieto.com

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

Pedram Tadayon, CEO, Emric, tel. +46 70 685 55 88, pedram.tadayon(at)emric.com

Tieto aims to capture the significant opportunities of the data-driven world and
turn them into lifelong value for people, business and society. We aim to be
customers’ first choice for business renewal by combining our software and
services capabilities with a strong drive for co-innovation and ecosystems.

Headquartered in Finland, Tieto has over 13 000 experts in close to 20
countries. Tieto’s turnover is approximately EUR 1.5 billion and shares listed
on NASDAQ in Helsinki and Stockholm. www.tieto.com

About Emric

Emric supports a global network of banks, credit companies and system partners
to incorporate a superior value chain for lending and leasing into their
business. Headquartered in Stockholm, the company has additional business
operations in Kalix and Belgrade.

With approximately EUR 20 million in revenue, installations in 24 different
countries and 60 individual banks and credit companies as clients, Emric is the
largest vendor in Scandinavia in its segment.