Atos mulling spinoff of cybersecurity unit as CEO departs
The French solutions giant is considering separating into two publicly-listed companies weeks after former CEO Rodolphe Belmer left after just five months
Atos is considering spinning out its cybersecurity and big data division into a seperate company following the departure of its CEO.
The French tech giant says it is "studying" a possible seperation into two publicly-listed companies, with one being a "leading player" in digital transformation, big data and cybersecurity while the other will focus on managed and professional services and digital workplace.
The French services giant also announced the departure of its former CEO Rodolphe Belmer after just five months in the role.
Atos' share price has plummeted by more than 27 per cent today as investors were seemingly spooked by the news.
Nourdine Bihane and Philippe Oliva have been named as Atos' deputy CEOs following his departure and in preparation of a possible split into two companies.
Its €4.9bn-revenue Digital, Big Data and Secuiry (BDS) business, referred to as SpinCo, would be led by Oliva.
The second half of the business, referred to as its Tech Foundations business, or TFCo, would be led by Bihmane. This business generated €5.4bn in revenues in 2021 (excluding unified communications and collaboration).
"I am thrilled to welcome Nourdine and Philippe as deputy CEOs of the Group. Both are highly recognised seasoned industry senior executives capitalising on a large international exposure and with a proven track record in their respective fields," said departing Atos CEO, Rodolphe Belmer.
"I know we can rely on their strategic acumen, proven leadership and operational efficiency that will be instrumental as Atos embarks on a transformation journey and intends to open the next chapter in its outstanding history."
Atos added the possible business spin-offs lead to a reorganisation of the group, resulting in a significant reduction in the scope of the functions and a redefinition of the mission of the Atos Chief Executive Officer.
As a result, Belmer felt he had "no choice" but to resign from his positions as director and CEO of the company, according to Atos' statement.
His resignation will take effect on September 30, 2022, at the latest, so as to allow time to ensure the orderly transition of the group's governance with the two newly appointed deputy CEOs.
Advantages and financing of split
Atos believes the creation of two publicly-listed companies will present an increased focus on their respective strategies and markets, each with a dedicated management team, the agility to better serve their customers and to execute their respective transformation plans.
Should the group move forward with its restructuring plan, Atos estimates its total funding needs for the 2022-2023 period, until the contemplated separation would become effective, to be around €1.6bn.