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Atos's agreement to divest its legacy service division fails

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Atos's agreement to divest its legacy service division fails

After failing to come to an agreement about the sale of its legacy managed infrastructure services business, Atos, the French IT service company ended talks with the investment fund.

After failing to come to a deal with a potential buyer, French IT services major Atos has abandoned its efforts to sell its struggling legacy managed infrastructure services division. As a result, it will now need to bring the two sides of its business together. 

The parties' inability to reach a consensus on the terms and price of the contract put an end to their exclusive negotiations with EP Equity Investment over the sale of the Tech Foundations company. Both parties agree to waive any cancellation fees and keep the specifics of their talks confidential.

Paul Saleh, the CEO of Atos Group, revealed the company's plan to split into two in 2022 during a conference call with investors and the media on Wednesday. This came after IBM, the company's larger rival, spun out its managed infrastructure services division to establish Kyndryl in November 2021.

Saleh said they will keep considering strategic options for Atos for all of their assets in a way that best serves the interests of their customers, employees, and shareholders. Still, they have yet to rule out searching for another purchase. According to him, Atos will keep running Tech Foundations and Eviden as distinct businesses with a synchronized go-to-market approach in the interim.

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