The French government has extended a non-binding offer to acquire 100 per cent of Atos’ Advanced Computing business, which encompasses big data and cybersecurity activities. The proposed acquisition is based on an enterprise value of €500 million (£417.3 million), a figure that falls below the €570 million in revenue the Advanced Computing sector generated in 2023. Additionally, there is potential for the total deal value to rise to €625 million if earn-outs are included.
Atos, a major player in the technology and digital transformation sector, has been facing ongoing challenges, evidenced by the French government's renewed interest in its operations. This latest offer marks the second attempt at nationalisation within a year, following a prior bid in June 2024 to acquire Mission Critical System, Cybersecurity Products, and Advanced Computing for €700 million. The urgency behind these acquisitions stems from concerns over Atos’ stability, with the company experiencing a tumultuous period characterised by disappointing financial results for FY24 and a frequent turnover in leadership—having seen seven different chief executive officers in just six years.
The newly appointed CEO, Philippe Salle, is set to take the reins in February 2025 as Atos seeks to regain stability and clarity amidst its operational challenges. The Advanced Computing division under scrutiny includes high-performance computing (HPC) and quantum computing segments, alongside artificial intelligence and business computing divisions.
The government's proposal includes an exclusive negotiation phase extending to 31 May 2025, whereby an initial payment of €150 million is anticipated upon the signing of the purchase agreement. Furthermore, Atos has engaged an independent expert to evaluate whether the terms of the transaction reflect a fair market value, which will ensure an objective assessment of the offer.
Beyond the Advanced Computing segment, the French state continues its efforts to acquire Mission Critical Systems and Cybersecurity Products. The revenue generated from these divisions was approximately €340 million in 2023, underscoring their significance within Atos' broader operations.
Atos has chosen to refrain from further comments regarding the matter, adhering to a policy of limited public engagement during this period of negotiation. The outcomes of these discussions could have far-reaching implications not only for the company but also for France's strategic interests in the tech sector, particularly in the fields of cybersecurity and advanced computing technologies.
Source: Noah Wire Services