Finnish software firm Tieto announced on Tuesday that it will purchase its Norwegian competitor, Evry, in a transaction valued at 1.3 billion euros.
Tieto will hand over a 37.5% stake in the new company to Evry shareholders in addition to a cash payout of roughly 200 million euros.
Tieto said in a press release that the transaction will create one of the most competitive digital services firms in the Nordics providing software and cloud solutions, among others.
Once the deal goes through, the combined firm will be known as TietoEVRY. It will have a workforce of 24,000 and its estimated turnover will be around three billion euros. Tieto also said that it has identified annual savings of 75 million euros resulting from the merger. In April, the firm announced a plan to cut 700 jobs worldwide, 210 of them in Finland.
The deal is still subject to approval by both companies’ shareholders and competition authorities. The companies said that shareholder meetings are expected to take place in September at the latest.
Completion of the merger has been targeted for the final quarter of this year or during the first quarter of 2020.