Atos Looks To Modify Tech Foundations Sale Terms, Considers Selling More Assets
Atos, which is in the process of splitting into two separate companies, is in discussions with the private equity firm slated to purchase its Tech Foundations business about changing some terms of the sale agreement. It also is considering selling other assets as an alternative to raising further capital.
Global IT solution provider Atos is adding doubt to a deal to sell its Tech Foundations business to Luxembourg-based private equity firm EP Equity Investment with the news it is in talks to amend and simplify certain terms.
The Paris, France-based company Tuesday also unveiled plans to consider the sale of additional assets beyond Tech Foundations.
The possible sale of additional assets comes as Atos looks for ways to address how to raise capital and manage upcoming debt maturities in 2025. A sale of assets is not certain, as Atos is also looking at other ways to access debt or equity capital markets, the company said.
Atos in June entered into an agreement with EP Equity Investment for the private equity company to acquire 100 percent of Atos’ Tech Foundations business in a deal with an enterprise value of 2.0 billion Euros, or $2.2 billion. That deal would also include the Atos brand name.
Tech Foundations is the Atos Group business line focused on managed services, hybrid cloud and infrastructure, employee experience and technology services via decarbonized, automated and AI-enabled solutions. Tech Foundations has about 52,000 employees and customers in 69 countries, and in 2022 had revenue of about 6.0 billion Euros, or about $6.6 billion.
As part of that proposed sale, the remainder of Atos, primarily its Eviden business, will be known as Eviden SE.
Eviden includes Atos’ digital, cloud, big data and security business lines and has a focus on data-driven and sustainable digital transformation. Eviden has about 57,000 employees working with customers in over 53 countries with annual revenue of about 5 billion Euros, or about $5.5 billion.
An Atos spokesperson replied via email to a CRN request for more information by writing that the company is not providing further information at this time but will communicate in due time.
Atos in June 2022 unveiled a plan to split the global solution provider giant into two separate companies.
Atos’ board of directors has already given unanimous support for the deal. Shareholder approval of the deal will be sought during an ad-hoc extraordinary general meeting expected to be held during the fourth quarter of 2023.
The closing of the deal is slated to happen in the fourth quarter of 2023 or the first quarter of 2024, Atos said.
This is not the first sale of assets either contemplated or completed by Atos. The company in July entered exclusive negotiations with Schneider Electric for the sale of 100 percent of its EcoAct SAS business. EcoAct is an international consultant on climate solutions from planning and forecasting to carbon offsetting with 400 employees and revenue of about 70 million Euros, or $77 million.
The company in early April also completed the sale of it Italian operations, known as Atos Italia, to Lutech, an Italy-based IT services and solution provider.
Atos in January entered into exclusive negotiations with Mitel Networks for the sale of its Unified Communications & Collaboration Services businesses, also known as Unify. That deal is set to close in the second half of 2023.
One proposed strategic asset sale, that of Eviden’s Evidian security software business, fell through. Airbus, which in addition to its well-known aerospace business is a global provider of cybersecurity solutions, early this year explored taking a minority 29.9 percent stake in Evidian.
However, Atos in March said that Airbus was no longer pursuing that deal and that the two would explore cybersecurity partnerships.