Are you a client?
Sign in to view the full news archive.
Originally announced back in November 2024 (as we covered here) Atos has received a confirmatory €410m offer from the French State for its Advanced Computing business, marking a strategic downsizing as the IT services player continues its restructuring efforts. The transaction value includes €110m in contingent earn-outs tied to 2025/26 profitability metrics.
Significantly, Atos has carved out its Vision AI activities from the original deal scope, retaining these higher-margin operations within Eviden. Management noted that Vision AI contributes over one-third of its operating margin, suggesting the strategic decision to preserve value-accretive assets while divesting more capital-intensive High-Performance Computing (HPC) and quantum computing operations. We understand that the majority of Atos’ HPC contracts sit outside the UK, with the exception being a range of academic partnerships with the likes of University of Edinburgh, Swansea University, the STFC Hartree Centre, Wellcome Genome Campus in Cambridge, and the University of Oxford.
The retained Vision AI unit, anchored by the UK-based Ipsotek acquisition, will form a new business division focused on AI-powered video analytics for security and operational applications. The repositioning aligns with Atos's stated focus on higher-value AI, data, and security offerings (see Atos 'Genesis': Birthing a new beginning).
The Advanced Computing business currently generates some €800m in annual revenue, making this disposal material to Atos's financial profile. With binding agreements targeted for the coming weeks and closing expected in 2026, the transaction should provide crucial liquidity for Atos's ongoing transformation. The French State's involvement also underscores the strategic importance of maintaining domestic HPC capabilities, while Atos retains options in the faster-growing AI segments.
Posted by: Marc Hardwick at 08:44
Tags:
divestment
IT+services