Valmet of Finland Signs Agreement to Acquire Tieto's Paper Industry Software Business

en.Wedoany.com Reported - On October 27, Finnish industrial technology company Valmet signed a business acquisition agreement with software company Tieto to acquire the latter's Manufacturing Execution System (MES) business for the pulp, paper and fiber industries. The transaction covers the AI-driven TIPS MES production management software and Order-to-Cash solutions. The target business generated revenue of approximately EUR 32 million in 2025, and its existing software has been deployed at approximately 300 pulp and paper production sites worldwide. The transaction is expected to be completed in the second quarter of 2027.

The acquisition involves industrial software products from Tieto's Tieto Indtech unit. TIPS MES connects factory production planning with the actual manufacturing process, supporting production task execution, operational data monitoring and real-time production management. The accompanying Order-to-Cash system covers order processing and business processes for pulp, paper and fiber products. The software uses a web-based architecture, supports Software-as-a-Service (SaaS) delivery, and features generative artificial intelligence capabilities.

Upon completion of the acquisition, the TIPS business is planned to be integrated into Valmet's Process Performance Solutions business segment, complementing its existing industrial automation and process control product portfolio. The two parties plan to connect customer order requirements, production scheduling, manufacturing execution and real-time process control, providing pulp and paper mills with digital systems spanning from production management to process control.

The target business's existing revenue includes recurring services such as software maintenance and technical support. Valmet plans to continue providing software maintenance and support to existing customers through its global service team and local offices. Tieto has engaged ABG Sundal Collier as financial advisor, Schjødt as legal advisor, and EY for due diligence services for this transaction.