2023-08-01 06:44:00
Negotiations had been underway for several weeks, it is now official: Atos is restructuring and selling its historical activity. This Tuesday, August 1, the French IT group confirmed on Tuesday its plan to sell its outsourcing activities to Daniel Kretinsky, valued at 2 billion euros. In addition, Atos’ business will be restructured around the activities of its subsidiary Eviden.
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The transaction will be submitted for shareholder approval at an extraordinary general meeting to be held at the end of the year. She will have ” a net positive impact on the group’s cash of 100 million euros, said in a press release Atos. The transaction ” expected to be completed in Q4 2023 or Q1 2024 “, according to the document. The IT group also plans to launch a capital increase of 900 million euros. EP Equity Investment (EPEI), a holding company of Daniel Kretinsky, will invest a total of 217.5 million and will thus hold 7.5% of Eviden. The Czech billionaire also wants to include in the operation the company Fimalac of the businessman Marc Ladreit de Lacharrière – already his partner in the ongoing rescue of the distributor Casino -, indicated Atos.
“This will create value for our shareholders”
The group thus finalizes the split between its historical activities in difficulty (Tech Foundations, maintenance of the IT infrastructure, which has 52,000 employees worldwide) and those in growth centered on new technologies (AI, cybersecurity), as it announced in June 2022. Following the operation, Tech Foundations will retain the Atos name.
« This will create value for our shareholders by avoiding the risk associated with the recovery of (Tech Foundations) and its various liabilities and by refocusing the group on Eviden and its good growth prospects. “, commented the chairman of the board of directors of Atos, Bertrand Meunier, quoted in the press release.
Atos recorded a net loss of 600 million euros in the first half, according to its results published last Friday Free cash flow collapsed from -555 million euros to -969 million euros, well in below analysts’ expectations. Despite several changes to its governance since the departure in 2019 of its CEO Thierry Breton, who became European Commissioner, the group has accumulated more than 4 billion euros in losses and its valuation has fallen by more than 84%. On the activity side, the group saw its overall turnover slightly decrease in the first half, to 5.5 billion euros.
Many worried shareholders
In detail, Eviden is benefiting from the enthusiasm for cybersecurity and digital transformation, with growth at constant exchange rates and scope of more than 7%. Tech Foundations, on the other hand, is undergoing a controlled organic decline of its activity, by 1.6%. Atos has raised its annual targets and is now targeting growth of between +0% and +2% at constant data. It also confirmed its operating margin target, despite inflationary pressures on costs.
At the last general meeting of shareholders in June, the activist fund Sycomore failed to overthrow the governance, with the rejection by 65% of its resolution aimed at dismissing the chairman of the board of directors Bertrand Meunier. But many shareholders remained worried regarding the company’s plans.
(With AFP)
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