Value of the day in Paris – Atos leads SBF 120: Astek interested in Evidian – 23.01.2023 11:21

(AOF) – France’s Astek has informed the Atos board of its interest in Evidiana, says the Journal du Dimanche. On the exchange, Atos’ share rose 4.92% to 12.40 euros, the strongest advance of the SBF 120 index. However, it does not intend to take over Atos’ entire digital and cyber security business. Julien Gavaldon wants to implement a “patriotic restoration project”.

JDD finds that it has gathered several specialists around it, for example, the government group ChapsVision is negotiating with large industrialists. Eurazeo, Tikehau and Ardiana also came close.

Atos declined to comment when asked by AOF.

Evidian is already the subject of many expressions of interest. At the end of September, Atos had not met a €4.2 billion enterprise value offer from Onepoint.

Les Echos claimed earlier in the year that Airbus was in preliminary discussions with Atos to buy a minority stake in Evidia’s capital.

At that time, the IT team reacted to this information. “Atos notes that, in view of the implementation of its strategic plan, the company has begun exploratory discussions with potential future minority shareholders within the activities grouped under the Evidian name. These discussions are not sufficiently advanced to permit further comment,” the company said.

“We remind you that the strategic plan presented on the Capital Markets Day on June 14, 2022 envisages the retention by Atos of less than 30% of the capital of the Evidian scope and the sale of this stake to ensure the financing of its transformation plan”. .

At that time, Atos introduced a split project covering outsourcing services, digital workplaces and professional services, with Evidian on one side and the rest of the Atos perimeter on the other.

“Atos reminds that the Company and its Board of Directors investigate all expressions of interest received regarding the social interests of the company, especially the creation of value for its shareholders, employees and customers,” added the IT group.

Days after reports of Airbus’ interest in Evidian, Thales said it would “not make any offer to acquire a stake in Evidian,” according to a statement from a group spokesman to Reuters.

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Key points

– International leader in digital transformation, European leader in cloud, cyber security and supercomputers, established in 1997;

– EUR 10.8 billion activity divided into 3 divisions: infrastructure, outsourcing and private cloud for 55% of sales, digital, IoT and cloud solutions for 32% and big data and cyber security for 13%;

– Geographical balance of revenues: 23% of sales in North America, 25% in Northern Europe, 23% in Central Europe and 22% in Southern Europe;

– Restructuring and value maximization business model by splitting the group into 2 separate entities at the end of 2023 – Atos for outsourcing and Evidian for digital and security;

– Open capital (9.96% for Siemens pension fund and 2.2% for employees), 13-member board of directors Bertrand Meunier, managing director Nourdine Bihman;

– The financial position is under control with total cash of €3.5 billion at the end of June, followed by €2.7 billion in bank financing to cover the restructuring costs associated with the demerger.

Challenges

– Strategy for the second half of 2023 for the division of the group into 2 companies, Tech Fondations for outsourcing (infrastructure) and related work environments and Evidian for digital transformation, big data and security:

– Technical Funds: 1.1 billion euro funded recovery in 2026 with revenue growth, 6% operating margin and free cash flow of 150 million euro,

– Evidian: repositioning the portfolio through a €400 million plan to increase its growth to 7% per year by 2026 with an operating margin of 12% and a free cash flow of €700 million and strengthening the leadership positions with high margins,

– At the end of 2023, the distribution of 100% of Tech Fondations’ shares and 70% of Evidia’s shares to Atos shareholders, which will then be listed on Euronext Paris in early 2023;

– Innovation strategy developed in 18 R&D centers with a portfolio of 3,000 patents:

– open innovation through cooperation with university centers (quantum computing, high-scale computing, artificial intelligence, HPC, multicultural leadership, etc.), alliances with other players (AWS, Dell, Google, Huma, Microsoft, OVHCloud, Sparkle…), customers,

– 2 scientific communities consisting of expert employees of the group,

– Scaler program + cooperation with 50 startups;

– Environmental strategy supported by Digital Transformation Factory, Hybrid Cloud, “Business Accelerators” solutions, “Connected Intelligence” and “Digital Workplace”:

– Carbon neutrality in 2028 and halving of emissions by 2021 compared to 2025,

– sales of decarbonization solutions enhanced by the purchase of EcoAct,

– investments in hydrogen supercomputers and quantum technologies,

– Putting the 1st “green” loan into use;

– Advancement in security with British Cloudreach and Sovereign center in Bulgaria.

Challenges

– Increase in order intake in the 4th quarter, up to 71% of revenues at the end of September;

– Debt leverage control, 3.75%;

– Interest of personal funds for one or another of the divided activities;

– After returning to sales growth (5.7%) in the 3rd quarter of 2022, the goals for 2022 were set: at the top of the turnover (from 0.5% to 1.5%) and 3% – increase in operating margin in the range below 5% and cash flow below the range of -150 to 200 M€.

Learn more about the IT / DSE sector (digital services companies).

Growth is hampered by recruitment

According to research conducted for Numeum, a digital professional organization, 79% of companies in the sector believe that a lack of talent is hindering growth in the face of the demand created by digital transformation. Digital service companies predict 5% growth for 2022. Companies are using several levers to attract talent, especially to reward them, and average salaries in the IT sector have generally increased. New work organizations, career development prospects and meaningful assignments are other assets. Capgemini therefore adopted a new contract offering up to 70% remote working for all employees. A report by the Department of Research, Studies and Statistics (Dares) states that these adaptations are important and the French Strategy identifies that IT professions will be among the top employers by 2030.