Espoo – October 29, 2026 -- Valmet has agreed to acquire Tieto's manufacturing execution system (MES) business, which generates annual revenues of about EUR 32 million and runs at roughly 300 pulp and paper production sites worldwide. Closing is expected in the second quarter of 2027, subject to customary closing conditions. The release did not disclose the purchase price.
Deal covers TIPS MES and Order to Cash for pulp, paper and fibre
The transaction includes the AI-powered TIPS MES for production planning and execution, plus the Order to Cash solution for the pulp, paper and fibre industry. TIPS MES combines Tieto Indtech's MES and Order to Cash products. It links production planning with manufacturing operations so manufacturers can manage and optimize output in real time. The web-based system is available as software as a service (SaaS). Its generative AI capabilities are meant to complement Valmet's own AI development.
Recurring software revenue backs a Europe-leading installed base
TIPS MES is a market leader in Europe. The business draws a strong recurring revenue stream from software maintenance and support. Existing customers will keep receiving support and services without interruption through global teams and local offices.
Valmet targets autonomous mill operations with planning-to-control integration
Valmet says the purchase completes its Automation Solutions offering for the pulp and paper industries. It also supports the business area's strategic priority of strengthening leadership in pulp and paper, alongside growth in other process industries.
Jari Almi, VP of Pulp and Paper Systems at Valmet's Automation Solutions business area, said the timing is right to acquire a market-leading manufacturing software platform as requirements for mill autonomy grow. Linking customer demand, planning, execution and real-time process control is intended to help customers optimize performance across the entire mill.
Emilia Torttila-Miettinen, EVP of Automation Solutions, described the deal as part of a strategy of expanding the offering through innovation and targeted acquisitions.
Tieto cites the unit's autonomy for a seamless handover
Tieto CEO Endre Rangnes called Valmet a strong strategic and industrial owner for the business. He said the unit's high degree of autonomy within Tieto should make the transition seamless for customers, employees and other stakeholders.
After closing, the acquired business is planned to operate within Valmet's Process Performance Solutions segment. Valmet reported net sales of approximately EUR 5.2 billion in 2025.