Embracing Innovation: Atos Receives Non-Binding Offer from French State
Press Release
Atos has recently received a non-binding offer from the French State to acquire its Advanced Computing activities for an enterprise value of €500 million, with the potential to reach up to €625 million including earn-outs. This exclusive negotiation with the French State is a significant development for Atos and its Advanced Computing division.
Details of the Offer
The proposed enterprise value of €500 million, which may increase to €625 million with earn-outs, marks a major milestone for Atos. The previous non-binding offer from the French State encompassed a wider perimeter, including Mission Critical System and Cybersecurity Products businesses, in addition to the Advanced Computing business.
An exclusivity period has been granted until May 31, 2025, with the target of signing a Share Purchase Agreement by that date, pending customary commercial, employee, and administrative authorizations. An initial payment of €150 million will be made available upon the signing of the agreement.
Furthermore, Atos has committed to launching a formal sale process for BDS’s Mission-Critical Systems and Cybersecurity Products businesses. This move will have an impact on the current financial restructuring process and timetable, with the 2027 financial leverage expected to be between 1.8x and 2.1x, depending on the outcome of the ongoing €233 million rights issue.
Supplement to the Prospectus
Atos will file a supplement to the prospectus related to the ongoing €233 million rights issue with the French Autorité des Marchés Financiers (“AMF”), in accordance with applicable regulations. The subscription period of the rights issue will be extended, following an indicative timetable that will be included in the supplement.
The indicative closing date of the financial restructuring transactions is still planned by year-end or early January 2025. This development underscores Atos’ commitment to enhancing its Advanced Computing activities and strengthening its position in the market.
Impact on Individuals
For individuals, the acquisition of Atos’ Advanced Computing activities by the French State may have implications for job security and the overall stability of the company. Employees within the Advanced Computing division should stay informed about the progress of the negotiations and be prepared for any potential changes that may arise.
Impact on the World
On a larger scale, the acquisition of Atos’ Advanced Computing activities by the French State could have ripple effects within the technology industry. The consolidation of these activities under government ownership may lead to new innovations and collaborations that could shape the future of computing and artificial intelligence.
Conclusion
The non-binding offer from the French State to acquire Atos’ Advanced Computing activities represents a significant step in the company’s strategic growth and financial restructuring. As Atos moves forward with the negotiation process and potential acquisition, stakeholders should closely monitor developments to understand the implications for the company and the broader technology sector.
