French technology and business giant Atos, which was once a legend is now a sinking ship.
The company is facing a critical period as its share prices are declining.
Read on to find out what is going on at Atos.
Atos Undergoes Fall in Market Share; What Are The Reasons?
Atos has undergone a huge expansion under the leadership of Thierry Breton. There were high-profile acquisitions that led to the expansion of the company.
One such expansion was the acquisition of US competitor DXC Technology Co. for $10 billion, which failed resulting in a loss of over € 1 billion in market value. This, along with accounting errors, resulted in Atos’ downfall.
Another major factor would be the instability in the leadership. There have been five different CEOs in the past two and a half years for Atos, leading to Atos’ downfall.
As of today, Atos faces a debt of €2.4 billion that is due in 2025 and a shrinking market value.
How Will Atos Compensate For Its Losses?
Atos is now planning to sell off its IT business and negotiate with Airbus for its Strategic BDS unit. In addition to that, the company is negotiating with a court-appointed mediator to refinance its debts.
Atos was founded in 1997 as a merger of several IT companies. After that, it started its incline in the industry with the acquisition of multiple companies, including Siemens IT Solutions and Services, French supercomputing leader Bull, Xerox ITO, and Syntel.
By 2022, the revenue of the company had reached $12.1 billion, making it one of the companies in France’s blue-chip CAC 40 index.
Atos will be able to survive its operations on the basis of restructuring, securing new funding, and regaining the trust of inventors.
However, failure to renegotiate its debt might result in the shutdown of Atos, and a huge dent in the French IT services Industry.
