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The division includes the company’s artificial intelligence activities and its supercomputers, which can be used for nuclear deterrence.
ADVERTISEMENTThe French government has made a non-binding bid for Atos’ advanced computing business, valuing the unit at €500m.
The division includes the company’s artificial intelligence activities and its supercomputers, which can be used for nuclear deterrence.
The branch employs 2,500 employees and generated a revenue of around €570m in 2023.
The offer, which expires at the end of May, could allow Atos to reap up to €625m through performance-based bonuses.
An initial €150m will also be made available upon the potential signing of the deal, Atos revealed in a press statement.
Piled with debt
In September, the French IT firm cut its outlook for the year and lowered its revenue and operating margin targets for 2027.
The company now forecasts a revenue of €9.7bn for 2024, compared with the previous estimate of €9.8bn.
Plagued by debts, Atos has been engaged in a formal restructuring process since early 2024.
It has been hit by a range of issues, including supply chain blockages and a weaker business climate, that have dug into its market value.
The firm announced over the summer that it would be converting €2.9bn of loans into equity to shore up its finances.
Bondholders and lenders also agreed to provide as much as €1.675bn of new debt and to offer €233 million in new equity – potentially with the help of a private industrial investor.
Importance for national security
The government is keeping a watchful eye on the firm due to its importance for national security.
“High-performance servers and supercomputers are critical technologies for our defence and sovereignty, sources of innovation and employment for our economy,” France’s finance minister, Antoine Armand, wrote on X – confirming the exclusive negotiations on Monday.
The state previously bid for some Atos’ advanced computing business in June, although the offer expired with no conclusion.
The potential sale of Atos’ advanced computing business would allow it to reduce its debt, although its financial health is still dependent on a rights issue to raise €233m.
ADVERTISEMENTExisting shareholders can buy 13,497 new shares for each 24 shares they already own, a way for the company to boost liquidity.
Atos is extending the deadline period for investors to buy stock in this way.
The firm confirmed that restructuring is planned to end by early January 2025 at the latest.
Atos also said on Monday it would launch a formal sale process for its mission-critical systems and cybersecurity products units.
ADVERTISEMENTThese businesses generated a revenue of around €340m in 2023.
