A strategic operation for the State
The takeover of Atos’ sensitive activities by the French State is of major strategic importance. Indeed, the activities in question, which generate around 900 million euros in annual turnover, concerns crucial sectors such as defense, cybersecurity and critical infrastructure. The government wants to prevent these assets from falling into foreign hands, which could compromise national security.
By buying these assets, the State hopes not only to protect these strategic sectors, but also to stabilize a company which has lost more than 80% of its stock market value in one year. Atos suffered major setbacks with the failure of two major divestitures, which worsened its already precarious financial situation.
The state’s ambitious plan to save Atos
The Minister of the Economy, Bruno Le Maire, declared that the State does not wish to be the only actor involved in this operation. The government intends to rally other French companies operating in the fields of defense and aeronautics to its cause. This collaborative approach aims to strengthen the national industrial fabric while securing Atos’ sensitive assets..
Atos, for its part, had put in place an ambitious business plan for the period 2024-2027, with the objective of resuming its commercial activities and reducing its debt. The group planned to achieve a turnover of 9.9 billion euros in 2024, to reach 11.4 billion euros in 2027. However, a weaker-than-expected first quarter forced the company to revise its forecasts and seek refinancing solutions.
The challenges ahead
Despite government intervention, many challenges remain for Atos. The company still needs to find a way to reduce its debt, which amounts to around 5 billion euros. The takeover of sensitive activities by the State should, however, offer a breath of fresh air to Atos, allowing it to concentrate on its other segments of activity and regain financial stability.
In addition, the involvement of the State could reassure creditors and investors, thus facilitating the financial restructuring of the company. The ultimate objective is to enable the company to recover and once again become a key player in the French technology sector.
