International cloud and IT services firm Atos is planning to split its business into two publicly listed companies to “unlock value” and implement an “ambitious transformation plan” – it will however have to convince the French government, which regards the firm as a national “strategic asset”.
The two companies planned would be spin-off “Evidian”, a player in digital transformation, big data and cyber security markets, “delivering high growth and high margins”, said Atos, with a €400m plan to “accelerate profitable growth”.
And remaining Atos would be “leader” in managed infrastructure services, digital workplace and professional services, with an “ambitious” €1.1 billion plan to “drive full turnaround by 2026”.
News of the plan sent Atos’ shares down over 25%, on top of the big loss in company value seen over the last week, following speculation over company strategy. The latest announcement wasn’t helped by the departure of CEO Rodolphe Belmer, after only having joined at the beginning of this year.
The company statement on its plan – still on its website – says Belmer would oversee the plan, but he resigned soon after it was announced, indicating an argument with the board over the move.
The plan involves a prior reorganisation expected to be completed during the “second half of 2023”, with the listing and distribution of Evidian shares “by the end of 2023”, said Atos.
The two planned entities are about the same size in terms of sales, but Evidian made an operating profit last year, and the remaining Atos business made a loss.
Bertrand Meunier, chairman of the board of directors of Atos, said: "Having examined a number of possible options, Atos is convinced the envisioned project, presented today by the management, is the best possible for the group and would create the highest value for all Atos stakeholders.”
The French government, which has a number of key contracts with Atos across the military, tax collection and many other functions, may think otherwise of course.
