(Boursier.com) — This is not a big surprise. Atos has not reached an agreement with Daniel Kretinsky’s company EP Equity Investment regarding the proposed sale of its Tech Foundations division. “The discussions as well as the put agreement were therefore terminated by mutual agreement, without any compensation from either side; the parties are released from any future reciprocal obligation, the exception of confidentiality obligations”, indicates the digital services company. Atos will continue to manage Tech Foundations and Eviden as two separate businesses with a coordinated business strategy. Atos will also continue to consider strategic options that are in the best interest of its customers, employees and shareholders.
The abandonment of the project, which was contested by certain Atos shareholders and political leaders, is a new example of the setbacks encountered by the French group, in great financial difficulties. To cope with this, Atos has decided to split its historic IT consulting activities, grouped in the Tech Foundations division, and those in cybersecurity.
The initial plan included the takeover of the company by Daniel Kretinsky for 100 million euros in cash, the transfer of 1.9 billion euros of commitments to the balance sheet and a 7.5% stake in the new company. Eviden, formed with the remaining activities in cybersecurity. Atos had also planned to transfer hundreds of millions of euros in working capital to Tech Foundations, which sparked anger from several minority shareholders and sharp criticism of the way the planned deal was presented to the markets. Tech Foundations, loss-making, employs 52,000 people and generates more than half of Atos’ turnover.
Atos also indicates that its revenue and operating margin objectives were achieved for the year 2023 and that its free cash flow for the second half amounted to -109 million euros. The Company specifies that its net financial debt was 2.230 billion euros at the end of 2023 and was composed of the following elements: net cash, cash equivalent and short-term financial assets, for 2.423 billion euros; and a gross financial debt of €4.654 billion. The Group respected the limits of the banking ratio applicable to its bank financing, with a financial leverage ratio (net debt / EBO pre-IFRS 16) of 3.34 times at the end of December 2023, compared to the banking ratio of 3.75 times .
In addition, the Company explains that it has rescheduled the publication of its full annual results to March 20, 2024 because the Atos Group’s auditors, Deloitte and Grant Thornton, have not finalized their audit work on the goodwill impairment.
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