Tieto to sell two software businesses from Tieto Indtech to EG

Tieto Corporation     PRESS RELEASE          18 February 2026    9:30 a.m. EET

Tieto has signed an agreement to sell two of Tieto Indtech’s software businesses to EG, an industry-specific software provider operating in the Nordics. The businesses to be divested are Edlevo, a leading provider of learning administration software to Swedish and Finnish pre-schools and schools, and HR & Payroll, a leading provider of HR and payroll software specific to public sector customers in Sweden, covering customers in central government organisations, universities, and municipalities.

The cash and debt free purchase price (enterprise value) for the divested operations amounts to EUR 95 million, subject to customary adjustments at closing. The divestment is expected to close during the second quarter of 2026. In line with the company’s newly updated capital allocation principles, Tieto intends to use the proceeds to reduce debt and/or to distribute capital to shareholders.

Tieto Indtech is today a portfolio of eight distinct software product businesses. As communicated at Tieto’s Capital Markets Day in November 2025, Tieto Indtech is taking steps towards a stronger portfolio and growth through simplification and increased focus. The agreement with EG is supporting this direction. The two businesses to be divested generated altogether EUR 37 million in revenue and EUR 5 million in adjusted operating profit (EBITA), including Group allocations, in 2025. The number of employees amounts to around 260.

“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”, comments Endre Rangnes, CEO of Tieto.

“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 customers and are committed to developing these solutions with continued focus on digital sovereignty, local expertise and strong innovation based on AI", says Mikkel Bardram, CEO of EG.

ABG Sundal Collier acted as a financial advisor, Schjødt as legal advisor and EY as due diligence advisor to Tieto in connection with the transaction.

For further information, please contact:

Tieto Newsdesk, news (at) tieto.com, tel. +358 40 5704072
Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288, tommi.jarvenpaa (at) tieto.com

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Tieto is a leading software and digital engineering services company with global market reach and capabilities. We provide customers across different industries with mission-critical solutions through our specialized software businesses Tieto Caretech, Tieto Banktech and Tieto Indtech, as well as our digital engineering business Tieto Tech Consulting. Our around 14 000 talented vertical software, design, cloud and AI experts are dedicated to empowering our customers to succeed and innovate with latest technology.

Tieto’s annual revenue is approximately EUR 2 billion. The company’s shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs. www.tieto.com