Atos refused a €4.2 billion bid for the acquisition of Evidian. Atos plans to spin off the division in the coming months.

The share price of the French IT services provider plummeted over the course of last year. Atos lost nearly 500 percent in value. The downward spiral began in February 2021, when the organization attempted to acquire competitor DXC Technology. DXC declined the deal. A few months later, an auditor found errors in the company’s records. Atos’ management was held responsible.

Investors lost confidence. In June 2022, Atos announced a reorganization to turn the tide. The organization plans to split into two businesses. The fastest-growing services, including big data and security, will be housed in new company: Evidian. Declining services, including infrastructure and digital workplaces, will continue as Atos. The organization hopes to attract investors and buyers with Evidian. Meanwhile, the first public acquisition bid has come in.

ICG and onepoint

Atos announced that competitor onepoint and investor ICG made an informal bid of €4.2 billion for Evidian. The partners approached Atos on their own initiative. The organization declined the offer.

“Following the thorough examination of this preliminary and non-binding mark of interest, the board of directors has convened and unanimously concluded that it is not in the interest of the company and its stakeholders”, Atos said. “The board of directors has therefore decided not to proceed.”

The reasons were not clarified, though the amount offered undoubtedly plays a role. Analysts expect Evidian to generate annual revenue of €4.9 billion. The board is required to consider any acquisition bid, but the amount must be high enough to be taken seriously. Following the announcement, Atos’ share price rose about 10 percent.

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