Struggling IT firm Atos announced on Thursday that it had received an offer from the French government to potentially acquire certain segments of its business. The proposed acquisition would encompass Atos’ advanced computing, mission-critical systems, and cybersecurity product divisions, as outlined in a letter of intent sent by the French state over the weekend. Atos stated that the offer was based on an indicative enterprise valuation ranging between 700 million euros ($750 million) and 1 billion euros.
The company indicated that due diligence processes are poised to commence shortly, with expectations of a non-binding offer being presented in early June. French Finance Minister Bruno Le Maire had previously disclosed the government’s intentions in local media on Sunday, emphasizing the importance of safeguarding sovereign activities under France’s exclusive control.
While several discussions with potential investors, including Airbus and Czech billionaire Daniel Kretinsky, have faltered, Atos continues to manage sensitive contracts with the French authorities, including data and cybersecurity responsibilities for the upcoming Paris 2024 Olympic Games.
Amidst escalating financial challenges, including substantial debt, Atos is actively engaged in talks for financial restructuring. The company reported a net debt of 3.9 billion euros at the close of the first quarter. On Monday, Atos revised its cash requirements upwards, indicating a need for 1.1 billion euros to sustain its operations through 2024 and 2025, a significant increase from the previously stated 600 million euros. The firm has invited proposals from investors until early May and aims to finalize a restructuring agreement by July.
The news of the French government’s offer buoyed investor confidence, reflected in a notable 19% surge in Atos‘ shares; the stakes rose by 22.01%, indicating a positive market response to the proposed acquisition.
