Another attempt by Atos to solve its debt problems by selling off part of its business has ended in failure.
Airbus, a potential acquirer of the IT services company’s big data and security business, has walked away from the deal after completing its “due diligence” investigation.
As a result, Atos has postponed — again — the release of its audited financial statement for 2023 while it evaluates its options. It has already delayed publication of the results once to give its auditors additional time to examine an independent business review report and to complete their audit of non-cash goodwill impairment charges.
Unlikely savior
The aircraft manufacturer might have seemed an unlikely savior, but there could have been interesting synergies between its existing activities and the cybersecurity and data science businesses of Atos. Airbus already has a cybersecurity business of its own, and manages vast quantities of data generated by its earth observation satellites.
However, on Tuesday Airbus dashed the hopes of Atos with a three-line communique: “After careful consideration of all aspects of a potential acquisition of ATOS’ BDS (Big Data and Security) business line, Airbus has decided it will no longer pursue discussions with ATOS about this potential transaction.”
In February, Atos announced that talks with another potential buyer had fallen through. EP Equity Investment was lined up to buy the company’s infrastructure management business, Tech Foundations, but the two parties failed to agree on deal terms and pricing, Atos CEO Paul Saleh said in late February. He only took over the top role at the company in mid-January.
The sale of the legacy Tech Foundations activities was supposed to free the more modern part of the business (its transformation acceleration, smart platforms, cloud, digital security, advanced computing, and net-zero transformation activities) from its crippling debt load, allowing the two to evolve in different directions.
Another buyer?
Now Atos faces the challenge of bringing the two halves back together with what Saleh calls a coordinated go-to-market strategy while it considers other strategic options.
Saleh hasn’t ruled out looking for another buyer.
Back in January Atos said that another company was interested in buying just part of its big data and security business, but it has said nothing more about that while a deal with Airbus was still on the table.
For now, the company would only say: “Atos is analyzing the resulting situation and actively evaluating strategic alternatives that will take into consideration the sovereign imperatives of the French state.”
That last remark is an allusion to criticism of its now-failed deal with EPEI, controlled by a Czech billionaire, on national security grounds. Atos holds numerous contracts with the French Ministry of Defense.
All this uncertainty will be disturbing for CIOs at the healthcare, manufacturing, and defense companies that Atos currently supports, and will do little to help it grow its order book.
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