Atos faces setback as French government rejects rescue deal
PARIS, FRANCE — Atos, the struggling IT services giant, has encountered another obstacle in its efforts to stabilize its operations. The French government has declined a proposed deal to acquire key assets from Atos’s Big Data & Security (BDS) division.
This move was intended to keep strategic components of the company under French control.
The proposal, which expired on October 4, involved the government purchasing assets related to Advanced Computing, Mission-Critical Systems, and Cybersecurity activities for €700 million ($748 million). These assets are crucial for IT projects within the French military and other public sector areas.
Despite the setback, Atos remains in talks with the French state, hoping to reach a new agreement that aligns with its ongoing financial restructuring plan.
Challenges in Atos’s restructuring plan persist
Atos has been navigating a turbulent period marked by declining revenues and increasing losses. In response, the company has embarked on a comprehensive restructuring strategy.
The expired offer was a significant component of this plan, designed to ensure the preservation of certain BDS activities within the Atos Group.
However, the company asserts that the expiration of this offer does not impact its broader financial restructuring efforts. The company plans to provide further updates if discussions with the government yield positive results.
Any potential sale of BDS assets will require approval from the Nanterre Commercial Court, where Atos is scheduled to present an accelerated safeguard plan on October 15.
Failed deals highlight Atos’s struggles
This latest development follows a series of unsuccessful attempts by Atos to raise revenue through asset sales. Earlier this year, Airbus withdrew its offer for BDS in March, and negotiations with Czech billionaire Daniel Křetínský’s EP Equity Investment (EPEI) also collapsed in February.
These setbacks have compounded challenges for Atos, which previously aimed to restructure into two separate entities: Eviden (formerly Evidien) for BDS operations and Atos Tech Foundations (ATF) for legacy IT services.
Uncertain future for Atos amid financial turmoil
Despite securing funding from creditors in July for its restructuring efforts, Atos continues to face uncertainty. The company’s previous deal with its largest shareholder fell through when the consortium withdrew from discussions in June.
As Atos attempts to navigate these challenges, it remains committed to finding a viable path forward that will secure its future operations and financial stability.
