The commercial court validated Atos’ accelerated safeguard plan on Thursday, October 24, offering a lifeline to the French IT group, whose activity deteriorated sharply in the third quarter and which intends to complete its restructuring by January 2025. “This important step guarantees the sustainability of Atos’ activities in the best interest of our employees and our customers, and allows us to confidently project the group towards a new page in its history”, reacted the new chairman of the board of directors. group administration, Philippe Salle, quoted in a press release.
This decision came a few minutes after Atos reported activity at half mast with a turnover of 2.3 billion euros in the third quarter, down 10.5% year-on-year. This decline concerned both the Eviden division, which brings together cybersecurity, digital and “big data” and whose revenues fell by 9% to 1.1 billion euros, as well as the Tech Foundations branch (outsourcing), which experienced a decline in sales of 11.7% to 1.2 billion euros.
At issue for digital activity: a “general slowdown of the market in America, reductions in contract scope in the United Kingdom and Central Europe (when a client decides not to renew 100% of the services provided by Atos, Editor’s note ), and the end of contracts”, indicated Jacques-François de Prest, financial director of the group, during an exchange with the press. Atos notably lost the huge contract for the Olympic Games, of which it was the technological pillar for the 2024 edition in Paris, the International Olympic Committee having preferred the American Deloitte. And this, from the 2026 Winter Olympics in Italy. Order intake fell by more than 30%, to 1.5 billion euros in the third quarter.
Three months to restructure
The company has retained its objectives for the period 2024-2027, revised downwards at the beginning of September, and expects a turnover of 9.7 billion euros in 2024, a drop of 4% compared to to 2023. The former tech flagship, whose share price on the stock market has fallen by more than 90% since the start of the year, is therefore counting on the completion of its restructuring plan between November and December 2024 or even January 2025 at the latest, to redress the situation and avoid shipwreck.
This plan, voted on at the beginning of September by creditors and shareholders, provides for debt relief of 3 billion euros, out of a total of nearly 5 billion, a capital increase and a “massive” dilution of shareholders. A mission entrusted to Philippe Salle, who will take the operational reins of Atos from February 1, 2025. “He is the best person to lead our transformation, define our long-term industrial strategy, and of course, restore confidence in Atos “, indicated Jean-Pierre Mustier, current general director of the group.
He already says he sees positive signals and expects “more sustained commercial activity during the fourth quarter”, thanks to “the expected return of multi-year strategic contracts with some of our large clients”, he detailed. . “Clients understood very well that there was no uncertainty about our ability to restructure,” added Jean-Pierre Mustier.
Discussions with the State drag on
Despite the confidence displayed, relaunching the Atos machine will not be easy. If the sale to the French engineering group Alten of Worldgrid, a highly critical subsidiary which designs the control systems for nuclear power plants, is still on track and should be finalized by the end of the year, according to Atos, discussions with the State on the transfer of “strategic activities” are dragging on. In June, the French state made an offer of 700 million euros to prevent these sensitive activities, which notably include supercomputers used for nuclear deterrence, from falling into the hands of foreign actors. A proposal that was not to the taste of Atos, which provided the State with a revised offer. “Given the current discourse of the State on the debt, it is not likely to be very generous and Atos is not in a strong position given that there is only one buyer,” analyzes Lionel Melka , managing partner at Swann Capital. Both parties indicated that they were continuing negotiations.
At the same time, several media outlets claim that Atos lost a call for tenders to provide the Ministerial Agency for Defense AI with a supercomputer dedicated to artificial intelligence in favor of the tandem formed by the American Hewlett-Packard and the French Orange. A contract estimated at more than 100 million euros by the economic newspaper The Tribune. Questioned by AFP on this subject, Atos did not wish to comment.