Atos Divests Unit Amid Ongoing Nationalization Discussions by Lawmakers

French IT consultancy Atos has announced the divestiture of its power grid consulting and engineering services unit. This decision comes amidst pressure from French lawmakers advocating for the nationalization of the struggling company.

Atos, recognized as the world’s largest managed security services provider, disclosed that it has agreed to sell its Worldgrid unit to Alten, a multinational firm headquartered in Boulogne. The deal is valued at approximately 270 million euros and is projected to finalize by the end of 2024, as confirmed by Atos.

The company is grappling with a substantial debt of 5 billion euros, positioning itself as strategically crucial to the French government. Atos’s technologies, particularly in computing and mission-critical systems, are integral to various governmental agencies and the military. To address its financial crises, Atos is currently executing a restructuring program designed to culminate in January 2025, which includes plans for capital increases and debt management, potentially providing up to $1.8 billion for its overhaul.

In a related move, the French government has recently acquired a “preferred share” in Bull SA, Atos’s supercomputing subsidiary. In June, Atos entered an agreement to share equity with the government, which allows for state oversight of activities deemed essential to national security. Economy Minister Antoine Armand stated that this measure is crucial for protecting the nation’s sovereign interests.

Discussions are ongoing regarding the acquisition of Atos’s advanced computing and cybersecurity divisions, following the expiration of a non-binding takeover offer on October 4 without reaching an agreement. Some lawmakers propose nationalization as a viable solution to Atos’s financial difficulties, leading the National Assembly’s finance committee to adopt an amendment that supports transforming the company into a public asset. However, this amendment necessitates further parliamentary review and a vote before implementation.

The situation surrounding Atos underscores the intersection of corporate stability and national security. For business owners in the cybersecurity sector, the events reflect a broader trend where governments are increasingly involved in safeguarding tech companies of strategic importance, raising considerations about the implications of corporate acquisitions on cybersecurity integrity and national interests.

As this situation evolves, keeping abreast of developments is essential for understanding not only the fate of Atos but also the potential cybersecurity landscape changes influenced by governmental interventions in the industry.