Atos ceases sale of managed infrastructure services arm
PARIS, FRANCE — Information technology (IT) firm Atos has halted its attempts to sell Tech Foundations, its managed infrastructure services arm, to EP Equity Investments (EPEI).
“We could not reach a mutually satisfactory agreement,” Atos group CEO Paul Saleh said. The two parties failed to meet on terms and pricing.
The botched deal marks another blow to Atos, which has around €2.23 billion ($2.42 billion) as of year-end 2023. Atos has announced its plan to apply for refinancing and restructuring to keep the business afloat.
The negotiations began in mid-2023, when Atos announced an internal separation into two entities: Eviden, focused on digital transformation, and Tech Foundations, focused on infrastructure services.
Atos valued Tech Foundations at €2 billion (US$2.1 billion). As part of the deal, Atos would receive €100 million (US$108.1 million) in cash and transfer €1.9 billion (US$2 billion) of debt to EPEI.
Amid board changes at Atos, the firm restructured the deal and demanded more money, further extending the negotiations. Bloomberg reported that Atos wanted an additional €2 billion (US$2.1 billion).
“The fact that talks with Kretinsky are over is no surprise; the mystery is why Atos announced a sale and then allegedly increased the asking price and ended up with no deal and a deeply distressed situation,” said David Nazar, founder of Ironshield Capital Management.
Meanwhile, Atos’ sale of its Big Data & Security Arm to Airbus is still underway. The deal, pegged between €1.5 and €1.8 billion (US$1.6 and 1.9 billion), could provide some relief for the struggling tech firm.
