French tech service firm, Atos, has called off the intended sale of its floundering infrastructure services operation due to ineffective talks with EP Equity Investment. Points of contention included deal conditions and expense.
The CEO of Atos, Paul Saleh, was unable to find a “mutually satisfactory agreement”, leading to the sale’s cancellation. Despite this, Saleh remains open to finding an alternative buyer and is still mulling over strategic options for the company.
Speculation suggests that the French government might have opposed the sale of Atos, given that the company handles significant defense contracts. These rumors point towards potential national security concerns. However, without an official statement, these remain purely as conjecture.
Atos is currently grappling with debt problems amounting to approximately €4.7 billion. The company is undertaking discussions about debt refinancing and restructuring, while also planning contingency strategies for potential future financial downturns.
Saleh, in a conference call, disclosed the group’s annual revenue for 2023 as approximately €10.7 billion ($11.6 billion), demonstrating a marginal growth of 0.4% from the past year. Tech Foundations witnessed a 1.7% decline in earnings, while the Eviden section exhibited a 2.9% increase in revenue, accumulating €5.1 billion.
Atos has postponed the presentation of its full annual financial results until March 20 to allow auditors sufficient time to review a business report and assess non-cash goodwill impairment charges. On this rescheduled date, Saleh has promised to disclose more details about Atos’s strategies for Eviden and Tech Foundations.
