April 29, 2024 at 09:02AM
The French government has tabled an offer to buy key assets from struggling IT giant Atos, including Advanced Computing, Mission-Critical Systems, and Cybersecurity Products, for a value between €700 million and €1 billion. The move aims to protect strategic activities from falling into foreign hands, particularly in defense and aeronautics. Due diligence will begin shortly.
Key takeaways from the meeting notes:
1. The French government has presented a non-binding letter of intent to purchase certain assets from Atos’ Big Data & Security business, including Advanced Computing, Mission-Critical Systems, and Cybersecurity Products, with a valuation between €700 million and €1 billion.
2. France’s Minister of Economics and Finance emphasized the importance of preventing strategic activities of Atos from falling into the hands of foreign-owned entities, particularly due to its involvement in projects for the military and other essential state functions.
3. Atos has confirmed receiving the letter of intent and expressed its support, emphasizing that the acquisition would protect the sovereign strategic imperatives of the French state.
4. It is reported that the French government is seeking to rally other “French sovereign players” to take a stake in Atos, potentially including companies operating in the fields of defense or aeronautics.
5. Atos has revised its estimated financing needs to €1.1 billion, up from the previous estimate of €600 million, with plans to raise the necessary funds through debt, equity, or third-party investors.
6. The company also revised its estimated revenue for the year down to €9.8 billion, representing a decline of approximately 3.3% compared to the previous year.
7. If an agreement is reached with the French state, Atos does not expect to see the proceeds from the transaction before the second half of 2025.
8. Experts commented on the French government’s move, noting its significance in securing critical technology and ensuring AI sovereignty, but indicating that the offer is not certain to materialize, and Atos is expected to refinance successfully.
These are the key points from the meeting notes regarding the French government’s offer and Atos’ financial position and potential restructuring.