Friday 24 June 2022

*NEW RESEARCH* Atos proposes business split

Atos proposes business split - report front coverLast week, Atos announced the proposed split of its business into two publicly listed companies (see Atos is considering splitting the business into two). In summary, if the restructuring goes ahead, we will see the creation of two businesses. The first (SpinCo) would be named Evidian and would bring together Atos’ Digital and Big Data and Security (BDS) business lines. The second (TFCo) would retain the Atos name and would include Managed Infrastructure Services, Digital Workplace, and Professional Services.

Atos is positioning the move as an ambitious transformation plan that willenable the business to unlock value. At first glance, investors were not impressed; they sent the share price falling 23% on the day of the announcement, and by 31% over the week. The mood was not helped by the news of, in our view, the untimely departures of the Group CEO and CFO being announced.

We track Atos closely. Atos is right to highlight the gems that it has within its business. But there is a question mark over whether splitting the business in two will have the desired effect, i.e., enabling the company to leverage its biggest assets and start to deliver value for shareholders.

In this latest research note from TechMarketView’s Chief Analyst, Georgina O’Toole, we take a close look at the proposals, consider the likely outcome, highlight the challenges – and potential benefits - that lie ahead, and analyse what the move means for the UK business.

TechMarketView subscribers can download the CompanyViews report - Atos proposes business split: What does it mean? – now. If you are not a subscriber or are not sure if your company has a corporate subscription with us, please contact Deb Seth to investigate further.

Posted by Georgina O'Toole at '08:59' - Tagged: strategy   reorganisation