Czech billionaire Daniel Kretinsky is currently in discussions to acquire Atos’s unprofitable legacy operations in a deal valued at 2 billion euros ($2.20 billion). This acquisition would allow Atos to refocus on its cybersecurity and cloud assets while also reducing its debt burden.
Known for his success in the energy sector, Daniel Kretinsky is expanding his business empire in Europe and has been actively making acquisitions in France, targeting assets such as French retailer Casino and Vivendi’s publishing group Editis.
Should the deal proceed, the Tech Foundations business, which provides infrastructure management services, would be divested, signaling a departure from Atos’s initial plan to split the company into two separate listed entities.
Following the sale to Kretinsky’s EP Equity Investment (EPEI) vehicle, the Tech Foundations business will use the Atos brand, while the current listed entity will group the assets the French state deems strategic, such as cybersecurity unit BDS and supercomputers, under the name Eviden.
900 million-euro share sale
Atos also said on Tuesday that it plans a 900 million-euro share sale to further shore up its balance sheet. The company stated that it would reserve 180 million euros of the shares in the capital raise for EPEI, granting EPEI a 7.5% stake in Eviden. BNP Paribas and JP Morgan will underwrite the sale of the remaining 720 million euros of new shares, as per the company’s announcement.
Atos said it aimed to halve its leverage ratio by end 2025 to two times its core operating profits. The expected sale would bring in 100 million euros in cash and cut 1.9 billion euros worth of liabilities from the tech company’s balance sheet, Atos said. The sale gives an enterprise value of 2 billion euros to the sold division, which generated 4.5 billion euros of core revenue last year and employs 52,000 people.
Atos’s shares were up by 8% at 0910 GMT. Its stock value has cratered in recent years from almost 100 euros in late 2017 to around 10 euros on Tuesday. The company had announced a 1.6 billion-euro split in June last year to regain investor confidence after several severe setbacks and governance instability.
Atos also announced the departure of Chief Financial Officer Nathalie Senechault, who had held the top spot for one year. Incoming CFO Paul Saleh, just a few days on the job, was on the call with analysts on Tuesday morning.