Tieto to Sell UK Financial Products Business
Finnish IT services firm Tieto has agreed to sell its financial services products business based in the UK to Sopra Group, a global technical consulting company, based in Paris, France. The unit provides various mortgages, savings, credit and debt collections systems to organisations including banks, lenders and collection agencies in the UK. The business currently employs approximately 160 people.
Net sales of the divested business amounted to €22m in 2011 and Tieto estimates that it will book a capital gain of around €15m in its first-quarter results. The divestment is expected to be closed and its cash flow effect to materialise during the first quarter of 2012.
“The divestment is part of Tieto’s strategy to exit non-core businesses. The synergies between our UK-based products business and the rest of Tieto’s business in the country and other parts of financial services are very low and therefore we have decided to divest it. The rest of Tieto’s business in the UK remain unchanged, i.e. our current services and customer relations for transaction banking products (payments and cash management), capital markets (securities), forest and energy solutions will continue,” said Per Johanson, executive vice president (EVP), industry solutions, Tieto.