TietoEnator and DnB Nor Agree on Cooperation in Payments

TietoEnator will deliver its ProPay payment transaction system to the Norwegian-based DnB Nor bank. The solution chosen by the bank is one of TietoEnators global software solutions currently being used in several large European banks. The deal also includes services relating to payment system integration and consultation. The value of the deal is at least €7m over a period of three years. Last year TietoEnator and the Norwegian bank Gjensidige Nor agreed on the delivery of a new core banking system. Soon afterwards, DnB and Gjensidige Nor announced their merger. Now TietoEnator and DnB Nor have agreed to put the modernisation of the core banking system on hold due to changes caused by the merger. During the merger period, the banks technology architecture differs from the previously agreed modernisation project and changes pertaining to the merger now have first priority. The interruption will mean that the net sales and operating profit of TietoEnators Banking & Insurance business area in the second quarter of 2004 will be approximately €3m lower than planned. It is as yet uncertain when and to what extent the remainder of the project, worth €14m, can be realised. TietoEnator expects its second-quarter sales to grow in the range of 7-11% compared with the second quarter of 2003. EBITA margin is expected to be between 9-11%.