Tieto to Buy Siemens R&D Assets

HELSINKI, Finland -- 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.

Tieto Corp.