The heavily indebted IT group Atos announced on Wednesday January 3 that it was in preliminary discussions with Airbus for the sale of its strategic branch (BDS) specializing in big data and cybersecurity, which the aeronautics group also confirmed.
Atos indicates that it has “received two letters indicating non-binding expressions of interest in its BDS activity, one only concerning part of its scope. The company will open a due diligence phase (detailed procedure for examining the accounts, editor’s note) with Airbus, whose indicative offer with an enterprise value of 1.5 to 1.8 billion euros covers the entire BDS scope”, indicates the company in a market update.
This new sale is being considered by the IT group which must reduce its debt and now plans to go “well beyond” the objective of “400 million euros” envisaged in July in order to honor its financing deadlines.
Strengthening the Airbus portfolio
Discussions between Airbus and Atos are at a preliminary stage, and are not sure to lead to “an agreement or a transaction”, underlined the aeronautical group, even if this acquisition could allow it to strengthen its portfolio “in terms of defense and security through leading capabilities in cyber, advanced computing and artificial intelligence.”
Atos indicates that it has received a second expression of interest for part of the BDS scope, without revealing the name of the company. Faced with difficult market conditions, the group “does not rule out additional asset sales” if the proposed sale of its Tech Foundations branch does not come to fruition.
Atos plans to split in 2022 with, on one side, the Tech Foundations branch (outsourcing) and, on the other, the strategic branch Eviden (cloud, cybersecurity, supercomputers). Last summer, the group decided to sell Tech Foundations to Czech billionaire Daniel Kretinsky. Eviden, on the other hand, would be listed on the Stock Exchange, after an initially planned capital increase of 900 million euros, and revised downwards on Wednesday.
“Discussions are continuing on the price to be paid, the structure of the operation and the transfer of a very large part of the liabilities attached to Tech Foundations. As with all negotiations, there is no certainty that they will result in “In addition, evolving market conditions and reactions require a reduction in the initially planned size of Eviden’s capital increase,” Atos said in its press release.