The government is keen to keep the assets in French hands as the group secures communications for the French military and is debt-laden
The Wall Street Journal was the first to report that the beleaguered French IT group, Atos, has entered negotiations with the government over the potential acquisition of its advanced computing activities for an enterprise value of €500 million.
Atos secures communications for the French military and secret services. It also manufactures servers from which to build supercomputers but is in the throes of restructuring in an effort to tackle its large debt. The government has been attempting to close a deal with the company for some months, as it is keen to keep and control Atos’ strategic technology assets within the country.
The plan is to have an agreed share purchase agreement signed by 31 May, the point at which an exclusivity period ends, Atos said in a statement. An an initial payment of €150 million will be payable as soon as the deal is signed.
The offer could rise to €625 million including earn-outs, Atos added.
Atos was hailed as one of Europe’s champions in software and technology sector but has been on the close to financial collapse for some months. Its recovery depends on the implementation of the accelerated safeguard plan it has drawn up.
“It is the role of the French State to guarantee, as a shareholder when it is justified, the perennity and development of the industrial activities that are most strategic for our sovereignty,” Finance Minister Antoine Armand was quoted by Reuters saying on Monday.
Advanced Computing, Critical Systems and Cyber Products are part of Atos’ cybersecurity unit BDS. They employ about 4,000 people and generate about €900 million annually.
Atos said it would also launch a formal sale process for Critical Systems and Cyber Products.