Tieto Corporation has entered into an agreement to sell two software businesses from its Tieto Indtech division to EG, a Nordic provider of industry-specific software. The businesses involved in the transaction are Edlevo, which supplies learning administration software to pre-schools and schools in Sweden and Finland, and HR & Payroll, which provides HR and payroll solutions for public sector customers in Sweden. These customers include central government organizations, universities, and municipalities.
The purchase price for the operations is EUR 95 million on a cash- and debt-free basis, subject to customary adjustments at closing. The deal is expected to be completed during the second quarter of 2026. Tieto plans to use the proceeds from this sale either to reduce company debt or distribute capital to shareholders.
Tieto Indtech currently consists of eight distinct software product businesses. At its Capital Markets Day in November 2025, Tieto outlined a strategy aimed at strengthening its portfolio through simplification and increased focus. The agreement with EG aligns with these strategic goals. In 2025, the two divested businesses generated EUR 37 million in revenue and EUR 5 million in adjusted operating profit (EBITA), including group allocations. They employ about 260 people.
Endre Rangnes, CEO of Tieto, stated: “We are pleased to have reached this agreement with EG. As a Nordic company focused on industry-specific software products, we are confident that EG will be a good new home for the units to be divested. As the units have been operating with great degree of independency within Tieto Indtech, we trust the transition will be smooth and successful for all stakeholders. With this divestment, Tieto Indtech is gaining a more focused portfolio, supporting its growth ambitions.”
Mikkel Bardram, CEO of EG, commented: “We are happy to welcome Tieto’s Edlevo and HR & Payroll customers and employees to EG. The acquisitions mark an important expansion for us into the Swedish education and public HR & Payroll markets, as well as the Finnish education market. As a Nordic software company, we understand the unique requirements of public sector customersand are committed to developing these solutions with continued focus on digital sovereignty, local expertise and strong innovation based on AI.”
ABG Sundal Collier served as financial advisor; Schjødt was legal advisor; EY provided due diligence services for Tieto during this transaction.
Tieto operates globally with approximately 14,000 employees specializing in vertical software, design, cloud services, and AI technologies across several industries through divisions such as Tieto Caretech, Banktech, Indtech and Tech Consulting. Its annual revenue stands at around EUR 2 billion and it is listed on stock exchanges in Helsinki (NASDAQ), Stockholm (NASDAQ), and Oslo (Oslo Børs). More information about Tieto can be found at www.tieto.com
