Tieto could be a target for Indian IT companies; merger with Evry also a possibility
Tieto, the Finnish IT services company, could make an interesting target for Indian IT companies or merger with Evry could be a possibility, according to Kauppalehti.
In its unsourced analysis, the Finnish-language piece wrote that the Indian outsourcers have been expanding in Finland. Tieto could make an interesting target because of its customers.
The company has years of experience in large Finnish IT projects with banks and governmental organisations. It said that Tieto could also be sold in parts and especially its software business could be of interest and it could have synergies with the Indian TCS for instance.
Tieto could also separate its product development services unit but this may not be of interest to buyers because of its poor performance.
The Norwegian IT house Evry is also for sale, and Tieto and Evry could jointly form a large Nordic IT house. The Finnish state is the second largest owner of Tieto with the main owner being the Swedish Cevian Capital, run by the Swedish Christer Gardell who is known for his skilled strategies.
Gardell is unlikely to give up his shares for a low price however. Besides, selling Tieto could be politically difficult because Indian outsourcers do not have the best of reputations in Finland.
Source Kauppalehti