TIETOKESKO BECOMES A JOINT VENTURE OF KESKO AND TIETOENATOR
TietoEnator Corporation has made an agreement to purchase a majority shareholding (80%) of Tietokesko Oy from Kesko Corporation. The aim is to start the joint venture’s operations on 1 June 2001. The objective of both companies is to develop Tietokesko in the way that it will be able to still better produce IT services for Kesko’s business operations. The deal includes an agreement according to which Kesko will sell the remaining Tietokesko shares (20%) to TietoEnator by 2010.
Tietokesko Oy’s net sales for 2000 totalled about FIM 232 million (about EUR 39 million). Tietokesko employs 170 IT professionals.
The purpose of the new joint venture is to strengthen Tietokesko and to safeguard the information technology knowhow and resources needed by Kesko both in Finland and abroad. The experience and resources of TietoEnator, which specialises in IT services, will provide synergy benefits, higher productivity and cost savings in both professional and operating services.
The deal will strengthen TietoEnator’s partnership role in the trading sector. At present TietoEnator has over 300 IT employees in trading operations in the Nordic countries.
Kesko is currently implementing major structural and operational changes, in which information technology has a central role. These include the incorporation of four commercial divisions, chain reform, internationalisation and expansion of e-commerce. The operative basic systems for various business sectors will be revised within the next few years.
All of Tietokesko’s employees will continue to work in their current duties, and a significant number of new staff shall be employed by Tietokesko to implement the great projects.
The business operations of K-linkki Oy, a Kesko subsidiary, will be transferred to Kesko’s division parent companies, which will assume management responsibility on 1 June 2001. K-linkki produces IT services for K-retailers, and it has a staff of 48 IT professionals. The aim of the reorganisation is to simplify decision-making and to strengthen the division companies’ ability to develop information system services covering the whole supply chain, in accordance with the K-Alliance’s chain reform. Eight employees of K-linkki will also be transferred to the joint venture established with TietoEnator Corporation.
Further information:
Kesko Corporation
Corporate Communications
Erkki Heikkinen
Senior Vice President
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