Valmet has entered into an agreement to acquire the manufacturing execution system (MES) business from Tieto, including the modern AI-powered TIPS MES for production planning and execution. The transaction also covers the order to cash solution for the pulp, paper and fiber industry.
The acquisition completes Valmet’s Automation Solutions offering for the pulp and paper industries, further strengthens its leadership in pulp and paper automation and expands its capabilities to accelerate customers’ transition towards autonomous operations.
Strengthening leadership in pulp and paper is one of the strategic priorities of Valmet’s Automation Solutions business area, alongside growth in other process industries. The acquisition creates long-term growth opportunities in process industries by building on Valmet’s existing customer base, technology and global reach.
“I am very pleased that we are taking an important step in strengthening our automation business. This acquisition is another concrete demonstration of our strategy in action, as we systematically expand our offering through innovations and targeted acquisitions. Together, these efforts enhance our capabilities and ensure that we continue to strengthen our market position and deliver greater value to our customers as an automation supplier,” says Emilia Torttila-Miettinen, EVP, automation solutions business area at Valmet.
“As the requirements for mill autonomy grow, the timing is right to acquire a market-leading manufacturing software platform. By connecting customer demand, planning, execution, and real-time process control, we can help customers optimize performance across the entire mill and accelerate their transition towards autonomous operations. This strengthens our position as a strategic partner supporting our customers’ long-term competitiveness and business success,” says Jari Almi, VP, pulp and paper systems, automation solutions business area at Valmet.
“We are pleased to announce this agreement. Valmet is a strong strategic and industrial owner for the business, with deep industry expertise and a comprehensive offering to the pulp and paper sector. By combining the software solutions with its existing portfolio, Valmet is well positioned to further strengthen the value delivered to customers across their operations and production processes. Given the business’s high degree of autonomy within Tieto, we are confident that the transition will be seamless and successful for customers, employees, and other stakeholders,” says Endre Rangnes, CEO of Tieto.
TIPS MES comprises Tieto Indtech’s Manufacturing Execution System (MES) and Order to Cash solution for the pulp, paper and fiber industry. It connects production planning with manufacturing operations, helping manufacturers manage and optimize production in real time. The web-based system is available as software as a service (SaaS), and its generative AI capabilities complement Valmet’s ongoing AI development efforts and provide new opportunities to drive innovation.
TIPS MES is a market leader in Europe and is installed at approximately 300 pulp and paper production sites worldwide. With annual revenues of approximately EUR 32 million, the business serves a well-established customer base and is supported by a strong recurring revenue stream from software maintenance and support. Existing customers will continue to receive support and services without interruption through global teams and local offices.
The business to be acquired is planned to operate as part of Valmet’s Process Performance Solutions segment. The acquisition is expected to be completed during the second quarter of 2027, subject to customary closing conditions.
