France bids $751Mn for Atos cyber assets
PARIS, FRANCE — The French government has submitted a non-binding €700 million (US$751.1million) offer to acquire part of IT services giant Atos’ cybersecurity and big data division.
The bid targets 100% of the Advanced Computing, Mission-Critical Systems and Cybersecurity Products activities of Atos’ Big Data & Cybersecurity division. These assets are critical for sensitive operations like defense, homeland security and the upcoming Paris 2024 Olympics, where Atos is the official cybersecurity provider.
Ongoing financial challenges of Atos
The offer could provide a lifeline for Atos, which has been grappling with nearly €3.9 billion (US$4.2 billion) in debt and has lost 94% of its share value over the past year.
Just days ago, Atos accepted a financial rescue proposal from a consortium led by its largest shareholder Onepoint, aiming to regain profitability and a BB credit rating by 2026.
However, the French government’s $751 million bid is on the low end of its previously indicated €700 million (US$751.1 million) to €1 billion (US$1.07 billion) valuation range for the assets.
Atos’ shares rose 12% after the announcement but remained down 26% so far this week.
Weighing options of Atos
Atos stated it will discuss the government’s proposal, but there are no guarantees a deal will be reached. The company previously failed to sell the cybersecurity unit to Airbus for up to €1.8 billion (US$1.9 billion).
“The Atos’ Board of Directors, under the aegis of the Conciliator Maître Hélène Bourbouloux, and the Company’s management will discuss this proposal with the French State, noting that no assurances can be made that the parties will successfully negotiate and enter into a definitive agreement,” Atos said in a statement.
In addition to the government bid and Onepoint consortium deal, Atos is selling other assets like its Worldgrid business to Alten for €270 million (US$289.7 million) as part of its restructuring efforts.
The developments come as Atos reported a 2.6% decline in Q1 2024 revenue to €2.4 billion (US$2.57 billion), citing economic headwinds and execution issues in its digital transformation initiatives.
