In a surprising turn of events, Atos has announced an agreement with bondholders and banks to rescue the struggling IT group from its financial woes. The deal includes a capital increase of €233 million, a contribution of €1.5 to €1.675 billion, and a debt reduction of €3.1 billion. This comes just days after Onepoint, Atos’ largest shareholder, backed out of the takeover, leaving the company in limbo.
Atos management is optimistic about this agreement and hopes it will bring an end to the crisis that has been plaguing the group for some time now. With over 100,000 employees across 69 countries and serving as a technological pillar for the upcoming Paris Games this summer, Atos aims to quickly launch operations by the beginning of July before the Olympic Games. The restructuring operations are expected to be completed by the end of 2024 or the first quarter of 2025.
The agreement means that banks and bondholders will become majority shareholders of the group, holding up to 99.9% of the capital. However, current shareholders have been given an option to contribute to secure up to 25.9% of the capital if they do not want their stake diluted too much.
Atos was once considered a flagship of French IT but was burdened with significant debt and was fighting for survival in recent times. Entrepreneur David Layani (Onepoint) recently abandoned efforts to save the company after failing in his attempts at revitalizing it due to its financial issues that had made it challenging for investors to keep investing in it anymore.
With this agreement, Atos aims to improve its financial position significantly by achieving a “BB” credit rating by 2026 and maintaining a minimum liquidity level until December 31st, 2026.
Overall, this move signals hope that Atos can overcome its challenges and return as one of France’s leading technology companies once again.
