Managed services News
Atos Gets Financing For Proposed Corporate Split
Joseph F. Kovar
Atos used its fiscal 2022 first half financial report to unveil the securing of a new debt package to help finance the company through its split into two separate global solution providers later this year, and said it expect to see real revenue growth in the second half of the year.
Atos, a global systems integrator and solution provider with a focus on cloud and digital transformation and a large managed security services practice, Tuesday told investors that the company has secured a new debt package to fund its planned split into two separately publicly-listed companies.
The news about the funding was unveiled when Paris, France-based Atos reported its fiscal 2022 second-half financials.
Atos in mid-June unveiled a plan to split into two separate companies.
One company, with a focus around managed infrastructure, digital workplace, and professional services, would retain the “Atos” name.
The second, Evidian, is slated to be focused on digital transformation, big data, and cybersecurity.
Atos North America is ranked No. 28 on the CRN 2022 Solution Provider 500.
Atos was unable to comment further on the news at this time given the time zone difference.
Atos said Tuesday it has secured a new debt package to provide the company the funding it needs before the split. It includes the conversion of 1.5 billion euros, or about $1.5 billion, out of a revolving credit facility commitment of 2.4 billion euros, or about $2.4 billion. Final documentation for the credit facility is slated to be signed in the next few days, the company said.
The funding will be used to ensure Atos is fully financed before the split is slated to happen, and to strengthen the company’s liquidity.
For the first half of 2022, Atos reported revenue of $5.6 billion euros, or about $5.6 billion, up slightly from the 5.4 euros the company reported for the first half of 2021. However, at constant currency, revenue fell over last year by 0.6 percent.
The second quarter was somewhat of a rebound for Atos at 2.8 billion euros compared to 2.0 billion euros in the second quarter of 2021.
Atos also reported a net loss of 503 million euros, which was significantly more than its loss a year earlier of 129 million euros.
During the first half of 2022, Atos reported the hiring of over 16,000 new employees, especially in its digital and its BDS cybersecurity divisions.
Looking forward, Atos said it expects to see positive revenue growth based on its second quarter momentum and its recent hiring push.