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Re:

Atos Deal to Sell Its Legacy Services Business Falls Through

Atos’s proposed sale of Tech Foundations to EPEI fell through after the parties failed to agree on revised terms and pricing. The company said it would keep operating Tech Foundations and Eviden separately.
From TheFinanceBase Team2 min to read
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Atos’s proposed sale of Tech Foundations, its legacy services business, to EPEI did not go ahead. Atos said negotiations ended without an agreement because the parties could not agree on revised deal terms and pricing.

Why did the Atos–EPEI deal fall through?

Atos reported in its 2024 Universal Registration Document that discussions with EPEI about a potential sale of Tech Foundations had concluded without a deal. The company’s explanation was: “Proposed new deal terms and pricing could not be mutually agreed upon.” Atos did not attribute that statement to a named executive.

The filing says neither party would indemnify the other. Both were released from reciprocal obligations, except for confidentiality obligations. It does not say that the reported FY2023 financial figures below caused the negotiations to fail.

What was Tech Foundations, and what did Atos plan next?

Tech Foundations was Atos’s legacy services unit and the business EPEI was discussing buying. After the proposed sale ended, Atos said it would continue operating Tech Foundations and Eviden as separate businesses, while coordinating their go-to-market strategy. It also said it would continue considering strategic options in the interests of customers, employees, and shareholders.

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Atos’s FY2023 figures provide context, not an explanation for the failed sale

Atos reported the following figures for FY2023 in its 2024 Universal Registration Document. They describe the company and Tech Foundations’ performance; Atos did not identify them as the reason the EPEI talks ended.

Measure FY2023 figure Scope
Revenue €10,693 million Atos SE
Revenue change at constant currency +0.4% Atos SE
Organic revenue change -1.7% Tech Foundations
Free cash flow -€1,078 million Atos SE

Source for all figures: Atos SE’s 2024 Universal Registration Document, reporting FY2023.

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Do not confuse the EPEI deal with Atos’s BDS discussions

The EPEI negotiations concerned Tech Foundations. Other Atos transactions and talks involved BDS (Big Data & Security), a separate business perimeter, and had different counterparties or outcomes.

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Transaction or discussion Business involved Outcome
EPEI discussions Tech Foundations Ended without agreement on revised terms and pricing, according to Atos.
Airbus discussions BDS On March 19, 2024, Airbus said it would no longer pursue discussions with Atos about a potential BDS acquisition. Airbus announcement.
French State offer and follow-up Selected BDS activities A non-binding offer expired on October 4, 2024, without agreement. Atos said on October 7 that it had sent a new proposal to continue discussions. Atos announcement via Euronext.
Other transactions recorded in Atos’s 2024 filing Advanced Computing and Worldgrid The filing records a French State offer for Advanced Computing and the separate completion of the Worldgrid sale to ALTEN in December 2024. Neither was the EPEI–Tech Foundations deal. Atos Universal Registration Document 2024.

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