Atos sells off UCC arm to Mitel in €700m assets divestiture aim

The proposed deal is part of Atos’ ongoing divestment plan which includes its split into two listed companies

French firm Atos announced it has entered exclusive negotiations to sell up its unified communications and collaboration (UCC) services businesses, Unify, to Canadian vendor Mitel.

The Paris-based group said the talks mark a new step in the execution of the Atos divestment programme announced during its Capital Markets Day in June 2022.

The plan involves its separation into two publicly listed companies - Evidian, which would bring together its digital transformation, big data and cybersecurity services; and Atos (formerly TFCo), which would make up managed infrastructure services, digital workplace and professional services.

Evidian has been eyed up more recently by Airbus who reportedly wants to take a minority stake in the business.

"We are pleased with this announcement, which marks another important step in the execution of our divestment programme and brings us closer to the €700m target that we set seven months ago," said Atos senior executive VP, Diane Galbe.

"Moreover, it is a further testimony that we are delivering on our ambitious transformation plan at pace."

Mitel to form a UCC market leader

Unify offers on-premises UCC solutions, cloud-based Unified Communications-as-a-Service (UCaaS) and Cloud Contact Center-as-a-Service (CCaaS) solutions.

With revenues of €550m and a 3,000-strong global headcount, Unify provides a wide range of managed and professional services, serving 40 million users across 90 countries.

The merger between Unify and Mitel would create a UCC "leader" addressing more than 75 million users worldwide, Atos claimed.

"Unify has been a pioneer in the UC industry and our companies share a common passion for innovation focused on solving real customer communications needs," said Mitel president and CEO, Tarun Loomba.

"The addition of their successful global managed services, vertical capabilities, and engineering excellence would bring scale, expertise and new capabilities to Mitel that would strengthen our ability to deliver choice and flexibility for customers in today's rapidly changing world of business communications."

The proposed deal is expected to close in H2 2023 and is subject to the consultation of the relevant employee representative bodies and other customary regulatory approvals.