Atos explores business sale with €1.9 billion transfer of liabilities

Chicago, Aug. 2 – Atos SE is contemplating the sale of its infrastructure business, Tech Foundations, to EP Equity Investment, according to a press release.

The €2 billion enterprise value of the sale would break down into a net cash positive impact of €100 million and the transfer of €1.9 billion of on-balance sheet liabilities.

For the transaction, Atos will seek consent from its concerned bank creditors before entering into any final agreements at a date expected by the end of the year.

Atos is very confident on the granting by its bank syndicate of the necessary loan waivers.

Before the announcement of the potential divestment, Atos had been planning to spin off its Tech Foundations subsidiary.

Under the new plan, the parent company would be renamed Eviden SE after the sale, and the Atos name would move with Tech Foundations.

As part of the going forward plan, Eviden would be aiming to strengthen its capital structure through capital increases and a divestment plan which includes an additional €400 million of assets on top of €700 million already executed.

The Atos-Tech Foundations transaction is expected to be completed in the fourth quarter of 2023 or the first quarter of 2024.

According to the press release, the group will also seek to extend maturities and reduce its debt, while the group continues the ongoing working capital normalization.

The group is estimating 4x pro forma leverage as of December 2023 but is targeting around 3x net leverage by 2024 and around 2x by 2025.

Atos lost its investment-grade rating from S&P Global Ratings in mid-July, with a negative outlook when it was expecting the spinoff.

Rothschild & Co, J.P. Morgan Securities plc and Perella Weinberg Partners. are acting as financial advisers to Atos.

Darrois Villey Maillot Brochier AARPI acted as legal counsel to Atos.

Atos is an information technology services company based in Bezons, France.

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