Valmet to Acquire Tieto’s MES Business to Expand Pulp and Paper Automation Portfolio

Valmet has agreed to acquire the manufacturing execution system (MES) business from Tieto, including the AI-powered TIPS MES platform and its Order to Cash solution for the pulp, paper and fibre industry. The acquisition is intended to strengthen Valmet’s position in pulp and paper automation and support customers’ transition towards autonomous mill operations.

The transaction will expand Valmet’s Automation Solutions portfolio by connecting production planning, manufacturing execution and real-time process control. It also creates opportunities for growth in process industries by leveraging Valmet’s existing customer base, technology and global reach.

TIPS MES comprises Tieto Indtech’s manufacturing execution system and Order to Cash solution. The web-based platform connects production planning with manufacturing operations, enabling manufacturers to manage and optimize production in real time. Available as software as a service (SaaS), the system also incorporates generative AI capabilities.

The business is a market leader in Europe and is installed at approximately 300 pulp and paper production sites worldwide. It generates annual revenue of approximately EUR 32 million and has a recurring revenue stream from software maintenance and support.

Emilia Torttila-Miettinen, executive vice president of Valmet’s Automation Solutions business area, said the acquisition supports the company’s strategy of expanding its offering through innovation and targeted acquisitions.

Jari Almi, vice president of Pulp and Paper Systems within Valmet’s Automation Solutions business area, said integrating planning, execution and process control would help customers optimize performance across entire mills.

Tieto CEO Endre Rangnes said Valmet’s industry expertise and existing portfolio made it a strong strategic and industrial owner for the business. Tieto added that the business’s operational autonomy within the company was expected to support a smooth transition for customers, employees and other stakeholders.

The acquired business is planned to become part of Valmet’s Process Performance Solutions segment. Existing customers are expected to continue receiving support and services without interruption through global teams and local offices.

The acquisition is expected to be completed in the second quarter of 2027, subject to customary closing conditions.