Still Aiming for Government Deal on Strategic Assets as Initial Offer Expires

IT firm Atos is still pursuing a deal with the French government concerning the sale of its strategic activities, including cybersecurity and supercomputing, following the expiration of an initial offer. The company is currently undergoing restructuring after reaching an agreement with its main creditors earlier this year. Atos plays a crucial role in securing communications for the French military and secret services and manufactures servers for supercomputers.

Atos continues negotiations with the French government

Atos announced that it remains open to discussions and has submitted a new proposal to the French state aligned with its financial restructuring plan. The company emphasized that the expiration of the initial government offer does not affect its ongoing financial restructuring process.

In a separate statement, Finance Minister Antoine Armand's office indicated that the state intends to continue negotiations with Atos and will propose a new acquisition plan shortly. Atos shares fell 0.6% in early trading in Paris, reflecting a steep decline of around 90% in value this year.

The initial government offer was part of a strategy to maintain control over critical technology assets in France. However, the government's ability to mobilize substantial funds is in question due to pressing efforts to reduce a budget deficit projected at 6.1% of GDP this year, with a goal of reaching 5% by the end of 2025.

The specific divisions involved in the negotiations include Advanced Computing, Critical Systems, and Cyber Products, all part of Atos' cybersecurity unit BDS. This unit employs approximately 4,000 people and generates around 900 million euros ($987.30 million) in annual sales, as reported by a French Finance Ministry official in April.

Atos also noted that any deal with the French state would need the approval of the Nanterre Commercial Court, where its accelerated safeguard plan is set to be submitted on October 15.