Atos SE (“Atos”) today provided an update on ongoing discussions with the French State concerning the potential acquisition of its Advanced Computing, Mission-Critical Systems, and Cybersecurity Products businesses, operated under its Bull Defense and Security (BDS) division.
These discussions, which have been part of a broader strategic initiative involving the French government’s interest in maintaining control over critical national infrastructure, remain a key focus for both parties as Atos navigates its financial restructuring process.
Expiry of the Confirmatory Offer
The non-binding confirmatory offer received from the French State on June 12, and revised on September 30, 2024, for the acquisition of BDS’s Advanced Computing, Mission-Critical Systems, and Cybersecurity Products businesses officially expired on October 4 without the two sides reaching a final agreement.
Despite this setback, Atos remains committed to continuing negotiations. The company has submitted an alternative proposal to the French State, which is structured to align with its ongoing financial restructuring efforts.
Cybersecurity and Computing in France’s National Security
The Advanced Computing and Cybersecurity divisions under Atos are critical to national security and technological sovereignty for France. These units are responsible for delivering high-performance computing (HPC) solutions, mission-critical systems, and advanced cybersecurity services, all of which are integral to the nation’s defense, aerospace, and security sectors. These sectors are of immense strategic value, driving the French State’s interest in retaining oversight and control over these operations.
Atos’s cybersecurity portfolio, in particular, has gained prominence as Europe’s leading provider of cloud and cybersecurity solutions, offering robust defenses against the ever-evolving cyber threat landscape. Its tailored end-to-end cybersecurity offerings are crucial for protecting critical infrastructure across various industries, including government, healthcare, financial services, and defense.
Safeguarding Sovereign Interests
To ensure the protection of France’s national interests, Atos and the French State had previously discussed measures to maintain sovereign control over these sensitive operations. In line with these commitments, Atos has continued the process of granting the French State protective rights over critical and sensitive operations through the issuance of a preferred share (action de préférence) in Bull SA, the legal entity under which these activities are organized.
This share will provide the French State with specific oversight and decision-making powers related to the defense and cybersecurity assets, safeguarding these strategically vital resources. The issuance of this preferred share is on track and expected to be finalized by the end of the year.
Impact on Financial Restructuring
The expiry of the French State’s non-binding offer does not affect Atos’s current financial restructuring plan. This plan, which was largely approved by the affected parties on September 27, includes provisions for the continuation of the Advanced Computing, Mission-Critical Systems, and Cybersecurity businesses within Atos’s organizational structure. As part of this restructuring, Atos is focused on preserving the value of these critical assets while ensuring the company’s long-term financial stability.
The restructuring plan will be submitted to the Nanterre Commercial Court on October 15 for approval as part of Atos’s accelerated safeguard procedure. This judicial process will provide a legal framework for implementing the restructuring, protecting the interests of creditors and other stakeholders while ensuring that Atos remains on a sustainable path forward.
Atos Alternative Proposal to Continue Discussions
In light of the expired offer, Atos has taken proactive steps to keep discussions with the French State alive. The company has proposed an alternative solution that is compatible with its financial restructuring plan. Should these talks prove successful, any potential transaction will require the approval of the Nanterre Commercial Court, ensuring that all legal and financial considerations are fully addressed.
This proposal emphasizes Atos’s commitment to maintaining a constructive dialogue with the French State, particularly around its sovereign interests in the cybersecurity, advanced computing, and mission-critical systems sectors. As these divisions are considered essential to national security, any potential sale or restructuring of these assets will likely be subject to extensive scrutiny to ensure that France’s strategic interests are fully safeguarded.
The Strategic Importance of Cybersecurity
As digital transformation accelerates across industries, the importance of cybersecurity continues to grow. Atos has been a leader in this space, delivering comprehensive cybersecurity services to protect critical infrastructure and secure sensitive data. Cyber threats are becoming increasingly sophisticated, and governments and businesses alike are under pressure to enhance their defenses. Atos’s offerings, including threat detection, incident response, and data protection, position it as a key player in the cybersecurity ecosystem.
For France, the control of cybersecurity assets is not just about business—it’s about maintaining the integrity and security of its critical systems. Whether in protecting government networks, defending against cyberattacks on critical infrastructure, or securing sensitive communications, the French State’s involvement in these discussions underscores the high stakes at play.
As the process moves forward, all eyes will be on the outcome of Atos’s alternative proposal and the eventual implementation of the preferred share in Bull SA, which will provide the French State with essential oversight over its most sensitive operations.
