Narayan AmmachchiFrench technology company Atos confirmed the collapse of a potential deal to sell Tech Foundations, a subsidiary dedicated to managed services.
CEO Paul Saleh attributed the failed sale to an inability to reach “a mutually satisfactory agreement”, though the company has yet to share more details.
French media reports suggest that the French government may have intervened, potentially due to concerns about foreign ownership of Tech Foundations, which handles government contracts.
In late 2022, Atos underwent a significant restructuring, splitting its business into two separate entities: Evidian and Tech Foundations. Evidian focuses on digital and cybersecurity services, while Tech Foundations primarily deals with digital infrastructure management services.
This strategic move mirrored IBM’s decision to spin off its legacy IT infrastructure business into Kyndryl. However, the infrastructure business faced significant challenges due to the global shift towards cloud computing.
Atos is currently burdened by a US$3.95 billion debt, prompting them to explore various avenues for business restructuring.
Negotiations are reportedly underway with Airbus for the potential sale of Atos’ Big Data & Security (BDS) division. However, this potential sale would not be sufficient to fully address the company’s debt burden.
The combination of mounting debt and stagnant revenue has placed immense pressure on Atos’ leadership. Company shares have lost over 90% of their value in the past three years.
Atos has witnessed a significant turnover of CEOs, with four individuals holding the role in a space of 12 months. Current CEO Paul Saleh assumed the position in January 2024 after serving as the company’s CFO. His predecessor (Yves Bernaert) held the position for only three months, starting in October 2023.
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