Valmet has entered into an agreement to acquire Tieto’s Manufacturing Execution System business, including the AI-powered TIPS MES platform and an Order to Cash solution serving the pulp, paper, and fiber industries.
The acquisition is intended to expand Valmet’s Automation Solutions portfolio and strengthen the company’s capabilities as manufacturers move toward increasingly autonomous industrial operations.
TIPS MES connects production planning with manufacturing execution, giving mills tools to manage and optimize operations in real time.
The web-based platform is available through a software-as-a-service model and includes generative AI capabilities that Valmet said will complement its existing AI development initiatives.
TIPS MES is installed at approximately 300 pulp and paper production sites globally and is described as a market leader in Europe.
The business generates approximately €32 million in annual revenue and benefits from recurring software maintenance and support revenue.
Following the acquisition, existing customers are expected to continue receiving services through global teams and local offices without interruption.
Valmet plans to integrate the business into its Process Performance Solutions segment.
The company said combining the TIPS platform with its existing automation technology will allow customers to connect demand, planning, manufacturing execution, and real-time process control through a broader integrated system.
The acquisition supports Valmet’s strategy of strengthening its leadership in pulp and paper automation while expanding in other process industries.
Completion is expected during the second quarter of 2027, subject to customary closing conditions.
Valmet generated approximately €5.2 billion in net sales during 2025 and employs approximately 18,500 professionals across around 40 countries.
KEY QUOTES:
“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.”
Emilia Torttila-Miettinen, EVP Of Automation Solutions 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.”
Jari Almi, VP Of Pulp And Paper Systems At Valmet
“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.”
Endre Rangnes, CEO Of Tieto
