Atos SE has received a non-binding offer from the French government for the acquisition of its Advanced Computing division, part of the company’s BDS arm, in a deal valued at up to €625 million. The offer includes an initial enterprise valuation of €500 million, with an additional €125 million contingent on future performance targets.
The Advanced Computing unit encompasses Atos’ High-Performance Computing (HPC), Quantum Computing, and Artificial Intelligence divisions. The business, which employs approximately 2,500 people, generated revenue of around €570 million in 2023.
Under the terms of the offer, an exclusivity period has been set until 31 May 2025. During this time, the parties will work towards finalising a Share Purchase Agreement, subject to customary approvals and conditions. If agreed, Atos could receive an upfront payment of €150 million upon signing the agreement.
An independent expert will be appointed to assess the fairness of the transaction’s valuation, as required by Atos’ accelerated safeguard plan, approved by creditors and the commercial court of Nanterre earlier this year. The court will also oversee the transaction through its designated plan supervisor, ensuring alignment with the company’s financial restructuring framework.
As part of its broader restructuring efforts, Atos has also committed to launching a formal sale process for its Cybersecurity products and Mission Critical Systems divisions. These units generated €340 million in revenue in 2023.
The proposed sale of Advanced Computing was not factored into Atos’ financial forecasts during the approval of its safeguard plan. However, based on the €500 million enterprise valuation, the transaction is expected to reduce the company’s financial leverage by 2027 to between 1.8x and 2.1x, depending on the outcome of an ongoing €233 million rights issue.
Atos plans to amend its rights issue prospectus, approved earlier this month by the French financial markets authority (AMF). Investors will be allowed to withdraw their subscriptions within two trading days of the supplement’s approval, and the subscription deadline will be extended accordingly.
The financial restructuring process, which began earlier this year, remains on track to conclude by late 2024 or early January 2025. Atos has stated it will continue to update stakeholders as developments unfold.
The proposed sale aligns with Atos’ strategy to streamline its operations and strengthen its financial position amidst ongoing market and operational challenges.
