January 3, 2024 at 10:52AM
Atos is in talks with Airbus to sell its tech security division to ease financial burdens. Airbus is expected to offer €1.5-1.8 billion and aims to grow its cybersecurity arm. Atos is considering major asset disposals to meet its maturing debts. The sale of business assets signals a change in strategy for the French IT services provider.
Key Takeaways from the Meeting Notes:
1. Atos is in talks to sell its tech security division (Big Data & Security or BDS) to Airbus for an estimated €1.5-1.8 billion, as part of Atos Group’s efforts to ease its financial burdens.
2. Airbus aims to strengthen its cybersecurity arm by acquiring BDS, which could significantly accelerate the digital transformation of Airbus, enhance its defense and security portfolio, and support its decarbonization roadmap.
3. Atos Group plans to embark upon a “major asset disposal program” to clear its debts, with multiple measures being considered including getting new bank financing, accessing capital markets, and optimizing working capital.
4. The company’s recent announcement of a new strategy to separate Eviden and Atos Tech Foundations into two separately listed companies has caused a turbulent time at the top of Atos, resulting in a leadership shakeup and a shuffled board of directors.
5. There are ongoing discussions and considerations regarding the sale of other business assets, including the separation of Eviden and Atos Tech Foundations, as well as the potential sale of Tech Foundations perimeter to EP Equity Investment (EPEI).
6. Political concerns have been raised about the national security implications of a potential foreign acquisition of BDS, with some suggesting the government nationalize Atos.
7. Atos has seen significant leadership turnover, with three CEOs in as many years, and the company’s shares have fallen by more than 90 percent in the past three years, with a credit rating downgrade to BB- by S&P Global Ratings.
These are the key highlights from the meeting notes.