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Atos Secures £150 Million Contract with UK Government for IT Services

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French IT group Atos has been awarded a significant five-year contract valued at 150 million pounds ($193.5 million) by the UK government’s Department for Environment, Food, and Rural Affairs (DEFRA). The deal, announced on Wednesday, will see Atos manage DEFRA’s service desk operations, aiming to consolidate the department’s services for its 34,000 users into a unified system.

Expansion of Atos’ Role in the UK

Atos, already a key provider of IT services to the UK’s National Health Service (NHS), continues to strengthen its position in the UK market with this new contract. The contract is seen as a major step for Atos, signaling a recovery after the company faced financial challenges in the previous year.

Financial Restructuring and Market Challenges

The company had completed a critical financial restructuring plan last year, which allowed it to avoid collapse and resume securing major contracts despite a weak market environment. Atos has reported improved order intake, signaling a positive trajectory after navigating through financial instability.

Conclusion

This contract with DEFRA is a significant win for Atos, expanding its role in the UK public sector and reinforcing its recovery following its restructuring efforts. The company’s ability to secure such large contracts despite market weaknesses highlights its resilience and growing reputation in the IT services space.

Atos Announces Reverse Stock Split to Boost Investor Confidence

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French IT company Atos (ATOS.PA) announced on Friday that it will implement a reverse stock split to restore investor confidence following a financial restructuring plan completed last year to address a severe debt crisis. The reverse stock split will begin on March 25 and conclude on April 23, with new shares trading from April 24.

Under the split, every 10,000 old shares, each with a nominal value of 0.0001 euros, will be consolidated into one new share valued at 1 euro. The new shares, which are expected to be priced at around 49 euros ($53.02), will start trading on April 24.

Atos’ shares have dropped to all-time lows, trading at approximately half a cent, following a 233-million-euro capital increase last year that led to significant dilution for shareholders. The reverse stock split is intended to reduce stock price volatility and create a more favorable stock market dynamic.

The company, which owns the supercomputers integral to France’s nuclear deterrent, plans to hold a capital markets day in May to unveil its new strategic direction.

Atos to Launch Reverse Stock Split Amid Investor Confidence Push

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French IT company Atos (ATOS.PA) will proceed with a reverse stock split, set to take effect by May 1, in an effort to restore investor confidence. CEO Philippe Salle confirmed the decision on Wednesday, stating that the board will finalize approval in the coming days before initiating the process. The move follows a major financial restructuring last year, which significantly diluted shareholder value.

The reverse split was overwhelmingly approved at a general meeting in January. Atos shares have plummeted to historic lows, now trading at approximately one-third of a cent, after completing a 233-million-euro ($248.49 million) capital increase.

The company reported an annual revenue decline of 5.4% to 9.58 billion euros, missing previous forecasts. Market weakness and contract terminations contributed to the downturn. However, Atos highlighted a recovery in order intake, securing significant contracts such as a 165-million-euro extension with Eurotower and a deal to construct Finland’s latest national supercomputer.

Atos, once valued at 10 billion euros, now has a market capitalization of 600 million euros following governance instability and a failed restructuring attempt. While the company has not issued a 2025 outlook, Salle is set to outline his vision and mid-term strategy at the Capital Markets Day event on May 14.

The French government remains in exclusive negotiations to acquire Atos’ advanced computing segment, deemed critical for national defense. This division includes supercomputers essential for France’s nuclear deterrence and military communications.

Salle, who took over as CEO last month—Atos’ sixth in two years—reaffirmed that no additional asset sales would take place in 2025. “We’re not going to rip the group apart,” he stated, citing a strong cash position of 2.2 billion euros. He also dismissed any plans to raise the asking price for Atos’ mission-critical systems business, despite increasing military expenditures in Europe.