Atos has entered into discussions to sell its Tech Foundations (TFCo) business, a deal which will result in Atos assuming the name of its digital and cloud business arm, Eviden.

Atos is in talks with EP Equity Investment (EPEI) over the deal. Upon the deal’s completion, Atos will be rebranded to Eviden, and Tech Foundations will adopt the Atos brand. Atos highlighted that the divesture would empower Eviden to focus on its digital, cybersecurity, cloud, and advanced computing business arms.

Atos’ leadership team, comprising Nourdine Bihmane, Diane Galbe and Philippe Oliva, commented:

Following the sale of TFCo, Atos would become Eviden, a global leader in digital transformation with full strategic flexibility and enhanced capital structure to further accelerate its development.”

Atos had first discussed the possibility of separating its Eviden and TFCo businesses in June 2022.

“TFCo stakeholders would benefit from the backing and long-term vision of EPEI to fully implement its transformation and repositioning,” Atos’ leadership added. “This transaction will unlock new opportunities for the employees of both TFCo and Eviden. We welcome EPEI’s full support to TFCo’s management and employees.”

The deal, valued at €2 billion, will involve Atos receiving €100 million from EPEI, which will assume TFCo’s liabilities worth €1.9 billion. Atos stated it plans to raise €900 million to increase its capital base. €217.5 million will come from EPEI, granting it a 7.5 percent stake in Eviden.

Atos’ board has passed the deal through, and the transaction is expected to conclude in late 2023 or early 2024, depending on shareholder approval and other closing conditions.

Atos in Talks to Sell Unify to Mitel

Mitel is currently in talks to acquire Unify from Atos, with Unify representing Atos’s UC and collaboration arm.

The transaction would strengthen Mitel’s position in multiple locations worldwide and reinforce its commitment to providing choice and flexibility to its customers.

As a result of the acquisition, Mitel and Unify would become prominent UC leaders in Europe and the Americas, with an estimated collective customer base of over 75 million users across over 100 countries. Their shared channel community would encompass more than 5,500 global partners.

The deal would involve Mitel acquiring Unify’s voice platforms, collaboration and contact centre products, device and endpoint portfolio, and related intellectual property.

Atos’s History with Unify

Atos launched Unify Office with RingCentral at the start of 2021, with both vendors already having an established partnership.

The co-branded UCaaS solution, named Unify Office (UO) by RingCentral, became the exclusive UCaaS offering for the extensive user base of the Atos Unify product family. From cloud phones to team messaging and video, customers could access the services necessary to work more effectively in a digital-first world.

Later in 2021, Atos and RingCentral brought Unify Video to Europe to enhance the evolution of the workplace. The standalone video with team messaging empowered online meetings and support teams to work smarter together.

Unify Video offered customers access to high-availability, high-quality meetings, which integrated quickly with team messaging, calendar, task, contact management, and file sharing. The resulting “Smart Video” experience was perfect for the modern workforce.

However, 2021 was a challenging year for the French company, and Atos’ share price tumbled after it issued a profit warning stating it would miss financial targets. In a statement to investors, Atos said that revenue in 2021 was down 2.4 percent in constant currency to €10.8bn. The operating margin was around four percent against a target of roughly six percent.

Atos said “project slippage” in UC and collaboration contributed to the revenue miss. The Mitel acquisition of Unify could represent a shrewd opportunity for both companies, with Mitel potentially looking to reestablish itself as a leading vendor in UC.



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