The French government has submitted a €500 million non-binding offer to acquire Atos’ advanced computing division, which includes artificial intelligence and supercomputing technologies vital for national defense. The unit, employing 2,500 people, generated €570 million in revenue in 2023. If the deal is finalized, Atos could earn up to €625 million through performance-based bonuses, with an initial €150 million paid upon signing. The offer remains valid until the end of May.

Atos’ Financial Struggles

Atos has been battling significant debt and operational challenges, including supply chain disruptions and a sluggish business climate. The company revised its 2024 revenue forecast to €9.7 billion, down slightly from €9.8 billion. Since early 2024, Atos has pursued a restructuring plan, converting €2.9 billion of loans into equity and securing €1.675 billion in new financing. A €233 million rights issue is also underway to improve liquidity.

Strategic and National Importance

The French government views Atos’ computing technologies as essential for national sovereignty. Finance Minister Antoine Armand emphasized their importance for defense and economic innovation, confirming exclusive negotiations with the firm. A previous government bid for parts of the division in June failed to reach an agreement.

Plans for Further Divestments

In addition to the potential sale of its computing unit, Atos announced plans to sell its mission-critical systems and cybersecurity businesses, which generated €340 million in revenue in 2023. The company aims to complete its restructuring process by January 2025, focusing on reducing debt and stabilizing operations.

The proposed deal with the French government marks a critical step in Atos’ efforts to recover while ensuring the protection of key technological assets for France’s strategic interests.