Atos has reached important milestones in its financial restructuring process, positioning it for both short-term and long-term success, states the company.
The French IT services giant has diligently worked on its extensive financial restructuring for several months while contending with substantial debts and facing pressure to secure new financing, seek a potential new owner, or divest parts of its business.
Following unsuccessful potential acquisitions and takeover bids, Atos has prioritised securing funds for operational costs, debt payments, and ensuring its sustained future.
Recent agreements have bolstered its financial position, with banks and existing shareholders committing approximately €1.7 billion in financing, each pledging €838 million. Atos will convert €2.9 billion of debt into shares, ceding financial control to the banks and shareholders, resulting in significant dilution of capital for existing shareholders.
The Onepoint offer for acquisition was retracted two weeks after it was announced, prompting CEO Paul Saleh to focus on restructuring the company’s debt. Despite wiping off a substantial portion of its debt, Atos still faces an outstanding debt of around €1.7 billion.
Saleh anticipates completing the restructuring process by the end of 2024 or in the first quarter of 2025, with interim financing of €800 million secured to sustain operations until completion. Atos also secured two revolving credit facilities in July, amounting to €225 million and €350 million. Discussions with the French government for further financing are ongoing, with reports suggesting the government is considering the acquisition of Atos’ cybersecurity and supercomputer business to safeguard strategically important activities and maintain French ownership.
Atos’ role as the official IT partner of Euro 2024 and the upcoming Olympic Games in Paris, along with its position as a major supplier of IT consultancy and technology services in critical sectors across Europe and worldwide, make these developments particularly significant. The company’s successful restructuring is crucial not only for its operations, but also for the organizers of major sporting events and the various sectors it serves. It will be essential for ensuring its continued support to critical industries and its partnership with major global events, including Euro 2024 and the Olympic Games.