The French government has made an informal offer to the worth major player in the IT sector Atos for taking over its advanced computing division. The division is valued at approximately €500 million, and it includes the AI operations as well as the supercomputing abilities of Atos. This division is crucial for national security since nuclear deterrence and other essential defense applications strictly rely on it.
Atos’ computing unit has 2,500 employees and generated revenues of €570 million in 2023. Apart from the tender itself worth €500 million, the agreement could also include performance-based bonuses, which might push up the total value of the transaction to €625 million.
Atos also revealed that a €150 million advance could be made available upon the potential signing of the deal, which is scheduled to expire at the end of May 2025.
The announcement came as Atos faced severe financial setbacks. The company had lowered its revenue and operating margin forecasts for 2027 in September, project €9.7 billion in revenue in 2024, which was lower than its previous projections. The firm was already facing a massive debt burden and has been under formal restructuring since early 2024. Supply chain disruptions and a general decline in market conditions have worsened Atos’ financial positions.
Atos efforts to balance its finances have involved the conversion of loans worth €2.9 billion into equity, raising additional funding by €1.675 billion in new debt and €233 million in equity. The company has also entered into negotiations with potential private investors to strengthen its financial position.
The French government has emphasized the strategic importance of Atos’ advanced computing capabilities, particularly in relation to national defense. Finance Minister Antoine Armand highlighted that high-performance computing infrastructure is essential for innovation, employment, and defense sovereignty. This has made Atos a subject of significant government interest. Earlier in June, the French government had made an offer for parts of Atos’ computing division, although that bid expired without a conclusion.
The sale of Atos’ advanced computing business would help the company reduce its debt load. It still needs more money to solve its financial trouble, however, and that money has to be generated through a rights issue designed to raise €233m by selling new shares to existing investors. The company hopes this will be an early January 2025 story rather than much later. Furthermore, Atos is set to start a formal sales process in mission-critical systems and cybersecurity units with combined revenues of €340 million last year.
