Tieto calls the sale a step in its portfolio simplification. Valmet says the deal completes its Automation Solutions offering for the pulp and paper industry, and the business will become part of its Process Performance Solutions segment.
The divestment puts Tieto’s 2026 to 2028 strategy into practice
Tieto’s strategy for 2026 to 2028 rests on four priorities, one of which is a simplified core, and the company described 2026 as a transition year. Bent Philipps became Managing Director of Tieto Indtech on 1 October, after serving in the role on an interim basis since May.
“This divestment is aligned with Tieto Indtech’s strategic direction to simplify and strengthen its portfolio, sharpen its focus on scalable software products, and accelerate growth in selected strategic areas,” says Endre Rangnes, CEO of Tieto.
Tieto announced the deal alongside a lower growth outlook
Q3 2026 revenue fell to EUR 389.6 million from EUR 454.2 million, and organic growth was -11%. Tieto lowered its full-year organic growth outlook to -6% to -5% from the previous -5% to -3% , citing soft demand in Tieto Tech Consulting and declines in volume-based businesses in Tieto Banktech and Tieto Indtech, while raising its adjusted operating margin outlook to 15.5% to 16.0% from previous 14.8–15.8%.
For Valmet, the unit brings software with recurring revenue into automation
TIPS is installed at about 300 pulp and paper production sites, is available as software as a service and has a recurring revenue stream from maintenance and support. Valmet’s 2025 net sales were about EUR 5.2 billion.
“This acquisition is another concrete demonstration of our strategy in action, as we systematically expand our offering through innovations and targeted acquisitions. Together, these efforts enhance our capabilities and ensure that we continue to strengthen our market position and deliver greater value to our customers as an automation supplier,” says Emilia Torttila-Miettinen, EVP, Automation Solutions business area at Valmet.
The deal is due to close by the second quarter of 2027 after Juuso Pajunen joins Tieto as CFO, which is set to happen by 1 January 2027.
