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Atos SE to Trade as Eviden: Czech Billionaire in Talks to Buy Atos’ Legacy Operations

• Eviden: A Refocus on Cybersecurity and Cloud Assets

Czech billionaire Daniel Kretinsky is currently in negotiations to acquire Atos SE’s loss-making legacy operations, in a deal worth 2 billion euros. This transaction aims to reposition the struggling French company by focusing on its cybersecurity and cloud assets, while concurrently reducing its debt. With this move, Kretinsky, who has amassed his fortune in the energy sector, seeks to expand his extensive empire within Europe, furthering his buying spree in France, where he has expressed interest in acquiring assets such as French retailer Casino and Vivendi’s publishing group Editis.

The Role of AI legalese decoder in the Situation

In the midst of Atos’ transformative deal, an AI-powered solution like AI legalese decoder can play a vital role. This cutting-edge technology can facilitate the understanding and interpretation of complex legal documents, contracts, and agreements, mitigating the potential risks associated with such transactions. AI legalese decoder can quickly analyze massive amounts of legal text, identify key terms and clauses, and provide valuable insights to legal teams involved in negotiations and due diligence. Its ability to process complex linguistic structures and extract essential information can help streamline legal workflows, enhance decision-making, and ensure a comprehensive understanding of all contractual terms and obligations, ultimately reducing the potential for legal disputes.

• Impact of the Deal on Atos’ Structure

The sale of Atos’ Tech Foundations business, which offers infrastructure management services, will mark the end of the company’s initial turnaround plan to divide itself into two listed entities. Following the transaction with Kretinsky’s EP Equity Investment (EPEI) vehicle, the Tech Foundations business will continue to operate under the Atos brand. On the other hand, the remaining listed entity named Eviden will encompass assets deemed strategic by the French state, including the cybersecurity unit BDS and supercomputers.

• Financial Measures to Strengthen Atos

In addition to the sale, Atos plans to raise 900 million euros through a share sale to further reinforce its balance sheet. Approximately 180 million euros of the shares in this capital raise will be reserved for EPEI, effectively granting the company a 7.5% stake in Eviden. BNP Paribas and JP Morgan will underwrite the sale of the remaining 720 million euros of new shares. Atos aims to reduce its leverage ratio by the end of 2025, targeting a ratio of two times its core operating profits, and anticipates that the sale will generate 100 million euros in cash while eliminating 1.9 billion euros in liabilities from its balance sheet.

• Enterprise Value and Market Response

The sale of the Tech Foundations division to Kretinsky’s EPEI carries an enterprise value of 2 billion euros. This division generated 4.5 billion euros of core revenue and employed approximately 52,000 individuals in the previous year. News of the deal has positively influenced Atos’ stock, with shares experiencing an 8% increase as of 09:10 GMT. This surge is significant considering the company’s stock value decline in recent years from nearly 100 euros in late 2017 to approximately 10 euros currently.

Management Changes within Atos

Alongside the strategic developments, Atos announced the departure of Chief Financial Officer Nathalie Senechault, who held the position for one year. The new CFO, Paul Saleh, had just begun his role a few days prior and actively participated in the analyst call on Tuesday morning.

Overall, this deal marks a major transformation for Atos, as it sheds its loss-making operations and focuses on cybersecurity and cloud assets. With the assistance of technologies like AI legalese decoder, the legal aspects of this transaction can be effectively navigated, ensuring a comprehensive understanding of the complex contractual terms involved and reducing potential legal risks.

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