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Valmet has signed an agreement to acquire the manufacturing execution system business from Tieto including the AI-powered TIPS MES platform for production planning and execution as well as an Order to Cash solution targeted at the pulp paper and fibre industry. The move will expand Valmet’s Automation Solutions offering and bolster its ability to help customers transition toward autonomous operations in a sector where strengthening leadership remains a strategic priority. According to Valmet’s announcement the acquired business is set to integrate into the company’s Process Performance Solutions segment once the deal closes.
The divested unit generated revenue of approximately 32 million euros in 2025 with a substantial share derived from recurring software maintenance and support contracts Tieto reported. TIPS MES functions as a web-based software-as-a-service platform that connects production planning with real-time manufacturing operations and optimisation while its generative AI features are expected to complement Valmet’s existing development work in the field. The system has been installed at around 300 pulp and paper production sites globally and holds a leading position in the European market according to both companies.
Endre Rangnes CEO of Tieto said “We are pleased to announce this agreement. As a leading provider of automation solutions and services to the pulp paper and fibre industry Valmet offers a strong strategic match and industrial fit for the business. By combining the software solutions with its existing industry expertise and customer offerings the business will become an integral part of a broader value proposition that supports customers across their operations and production processes.” Rangnes added that the transaction represents a natural step in Tieto’s portfolio simplification enabling Tieto Indtech to concentrate on scalable businesses and growth opportunities in selected areas.
Emilia Torttila-Miettinen EVP of Automation Solutions at Valmet stated “This acquisition is a great strategic fit for Valmet and further strengthens our leadership in automation. By connecting customer demand planning execution and real-time process control it expands our capabilities to accelerate customers’ transition towards autonomous operations.” She noted that the deal builds on Valmet’s established customer base technology and global presence to unlock long-term expansion potential across process industries.
Completion of the transaction is scheduled for the second quarter of 2027 subject to customary closing conditions and regulatory approvals the parties indicated. Existing customers are assured of uninterrupted service through the current global teams and local offices during and after the handover. Valmet recorded net sales of roughly 5.2 billion euros in 2025 and maintains a workforce of approximately 18500 professionals across some 40 countries according to the company’s published figures.
The acquisition aligns with broader industry efforts to incorporate advanced software and artificial intelligence into production management systems that link demand forecasting with execution and control. Tieto views the sale as an opportunity to sharpen its strategic focus and enhance investments in innovation and operational efficiency across its remaining portfolio. Both parties emphasised that the combination creates a more comprehensive value proposition for industrial clients seeking greater efficiency and autonomy.
Baker McKenzie advised Valmet on the acquisition of Tieto’s MES business the law firm reported in its announcement. The firm’s role involved providing legal counsel to support the strategic transaction from initial structuring through to expected closing. This advisory work reflects the complexities often involved in technology transfers within the global industrial automation sector.
