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[January 15, 2014]
Tieto to acquire part of Siemens Convergence Creators' telecom R&D
(OMX Via Acquire Media NewsEdge) Tieto Corporation STOCK EXCHANGE RELEASE 15 January 2014, 9.00 am EET Tieto has signed an agreement with Siemens to acquire part of Siemens Convergence Creators’ Network Directory Server (NDS), IP Multimedia Systems (IMS), Home Location Register (HLR) and Radio Access (RA) businesses. The transaction will strengthen Tieto Product Development Services’ (PDS) portfolio in voice and IP transformation area.
As part of the planned acquisition, approximately 220 employees who are working in four countries and five locations will transfer to Tieto subsidiaries to be established as existing employees. The locations are Vienna in Austria, Zagreb in Croatia, Brno in the Czech Republic, Bratislava and Zilina in Slovakia.
Based on the new competences, the transaction will open up Tieto PDS good opportunities to provide services from these Central European sites to both its existing and new customers.
Based on the acquisition, new business related to a significant customer will also transfer to Tieto PDS. However, as typical in telecom R&D, purchase commitments are short. Expected income from the business is based on local price level for telecom R&D. Over time, the transaction is expected to contribute to annual sales in excess of EUR 15 million. In addition, it is anticipated to improve PDS’ profit.
“With Tieto we hand over these businesses to a worthy successor, who guarantees that customer satisfaction for the provided services will stay at the same high level”, stated Daniel Felicio, CEO of Siemens Convergence Creators at contract signing ceremony.
“New expertise in IP Multimedia Subsystem, Subscriber Data Management, home Location Register and Radio Access areas allow us to build new offerings for our customers. New locations enhance our global delivery capability and drive forward our global Product Development Services strategy. The acquisition strengthens our capabilities in these future growth technologies and our role as a R&D leader in communications infrastructure”, says Antti Vasara, Executive Vice President, Tieto Product Development Services.
The final transition to Tieto is expected to take place by 1 April 2014.
For further information, please contact: Antti Vasara, Executive Vice President, Tieto Product Development Services, Tel. +358 (0)2072 010, email@example.com Jani Hyppönen, Marketing and Communications, Tieto Product Development Services, Tel. +358 (0)40 8443471, firstname.lastname@example.org Enrico Filusch, Vice President Corporate Marketing & Communications, Tel. +43 (0)51707 45116, email@example.com For investors: Lasse Heinonen, CFO, Tieto Corporation, Tel. +358 (0)207 266 329, firstname.lastname@example.org TIETO CORPORATION DISTRIBUTION NASDAQ OMX Helsinki NASDAQ OMX Stockholm Principal Media Tieto is the largest Nordic IT services company providing full life-cycle services for both the private and public sectors and product development services in the field of communications and embedded technologies. The company has global presence through its product development business and global delivery centres. Tieto is committed to developing enterprises and society through IT by realizing new opportunities in customers’ business transformation. At Tieto, we believe in professional development and results.
Founded 1968, headquartered in Helsinki, Finland and with approximately 15 000 experts, the company operates in over 20 countries with net sales of approximately EUR 1.8 billion. Tieto’s shares are listed on NASDAQ OMX in Helsinki and Stockholm. Please visit www.tieto.com for more information.
Siemens Convergence Creators GmbH, headquartered in Vienna, provides its customers with turnkey solutions and services in the fields of communication networks, service and customer management, public safety and security, multimedia infotainment, as well as aerospace technology. In fiscal 2013, Siemens Convergence Creators had about 1600 employees at 19 locations in nine countries: Austria, China, Croatia, Czech Republic, Germany, Hungary, India, Romania and Slovakia.
The company supplies more than 70 countries with communication and media products and solutions. Among the most important customers are the top players in their respective industrial sectors, i.e. telecommunications, media (TV, publishing houses), transport (cruise ships, railways, aircraft manufacturers, airlines and airports), space, public safety (action forces) and energy (wind power, oil and gas).
Copyright © 2014 OMX AB (publ).
Copyright © 2014 OMX AB (publ)
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