French State Makes Strategic Move to Acquire Atos’s Advanced Computing Assets for €625 Million
In a significant development for France’s technology sector, Atos SE, the troubled French IT giant, has entered exclusive negotiations with the French government to sell its advanced computing division.
The deal, valued at up to €625 million ($653 million), marks a crucial step in securing French technological sovereignty and stabilizing Atos’s financial situation.
The French government has presented a non-binding offer of €500 million as the base enterprise value, with potential earn-outs that could increase the total value to €625 million.
The proposed acquisition specifically targets Atos’s Advanced Computing business, which includes High-Performance Computing (HPC), Quantum Computing, and Artificial Intelligence operations.
Key Details of the Proposed Deal:
- Initial payment of €150 million upon signing the purchase agreement
- The exclusivity period extends until May 31, 2025
- Coverage of approximately 2,500 employees
- Annual revenue of roughly €570 million (2023 figures)
French Finance Minister Antoine Armand emphasized the acquisition’s strategic importance, stating, “It is the role of the French State to guarantee the survival and development of industrial activities most crucial to our sovereignty.” This move reflects the government’s determination to control critical technological infrastructure within French borders.
The deal represents a focused approach compared to previous negotiations. An earlier state offer, which had expired, was broader in scope and valued at €700 million, as it included additional cybersecurity assets.
The current proposal explicitly targets the computing division, which serves essential French industries, including nuclear facilities and military operations.
For Atos, this deal comes at a crucial time as the company works to address its significant debt challenges. The company has announced plans to launch a formal sale process for its remaining BDS (Big Data & Security) division components, including Mission-Critical Systems and Cybersecurity Products. These units generated approximately €340 million in revenue in 2023.
The financial impact of this transaction is expected to be significant. Atos projects its 2027 financial leverage to fall between 1.8 and 2.1 times core earnings, depending on the outcome of an ongoing €233 million rights issue.
Looking ahead, the path to completion involves several key steps:
- Obtaining necessary commercial, employee, and administrative approvals
- Assessment by an independent expert to confirm fair market value
- Review by the specialized commercial court of Nanterre
- Extension of the current rights issue subscription period
- Targeted completion by year-end or early January 2025
The transaction represents a critical juncture in French industrial policy, demonstrating the government’s commitment to maintaining technological independence while providing a lifeline to one of France’s former premier tech companies. For Atos, transitioning to creditor control, this deal offers a chance to streamline operations and focus on recovery.
As this story develops, market observers will monitor closely how this strategic acquisition impacts France’s technological capabilities and Atos’s ongoing restructuring efforts.
The success of this deal could set a precedent for how European nations approach the protection of strategic technological assets in an increasingly complex global landscape.