France’s Thales Weighs Partnering With Private Equity on a $3bn Atos Deal, among suitors are Bain Capital, CVC, and PAI Partners

Feb 3, 2022 | News

France’s Thales is working on a plan to buy the cybersecurity business of IT consultancy group Atos, sources told Reuters, in a potential $3bn tie-up likely to test the political determination for shoring up France’s digital defences.

Thales, which ranks as Europe’s largest defence electronics company, and its adviser Centerview Partners have approached several private equity firms including Bain Capital to explore a possible joint offer as part of a deal that would involve a complex break-up of Atos, the sources said.

Thales would buy the big data and cybersecurity business, known as BDS, while private equity funds would swallow the remaining IT services operations of Atos, the sources said on condition of anonymity.

Thales said in a statement it was not currently in talks with Atos over a potential takeover, adding that the company led by Chief Executive Patrice Caine was “potentially interested” in any cyber-security asset that could be up for sale.

Atos declined to comment.

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Shares in Atos were up 10.32% at 1515 GMT after Reuters first reported on the plan, while Thales’ stock was down 3%.

Atos’ share price has plummeted to its lowest level since mid-2012 after issuing two profit warnings in seven months, becoming an attractive private equity target.

Yet any sale would face major obstacles in France where the administration of Emmanuel Macron is wary of seeing such ‘national champions’ sold to foreign investors with presidential elections looming in April.

“The French government will strongly oppose any break-up of Atos right now,” one of the sources said.

Thales’ advisers have also begun talks with CVC Capital Partners and PAI Partners over a possible joint bid for Atos, but the timing of such a move remains unclear, another said.

Bain, which in January bought French IT services firm Inetum in a deal worth about $2.27 billion, would use any joint buyout of Atos to expand its portfolio of tech assets in Europe, where it also controls Italian IT firm Engineering Group.

Bain, CVC and PAI declined to comment.

The French finance ministry did not immediately respond to a request for comment.

Source: Reuters

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