(VitalNews.org) – An IT firm in France called Atos has been struggling to stay afloat until it received an offer from the French government to take over some parts of its business.
The deal would include the government acquiring Atos’ advanced computing, mission-critical systems, and cybersecurity product divisions. The offer was based on a valuation between seven hundred million and one billion euros. The initial movements for the offer will begin soon and the offer itself could be made as early as June.
French Finance Minister Bruno Le Maire announced the deal this weekend. “There are within Atos sovereign activities that must remain under the exclusive control of France,” he said. Le Maine said that he was aiming for multiple French companies to invest in Atos, but all deals fell through. Atos is currently managing multiple sensitive contracts with French authorities as well as managing cybersecurity and data for the Paris Olympic Games.
Multiple discussions about deals from Airbus and even Czech billionaire Daniel Kretinsky have fallen through which prompted the proposed investment from the government.
The firm has been dealing with significant financial troubles including a high debt load of almost four billion euros. The company announced that they needed over one billion euros to fund their business through next year, which is higher than the number they originally provided to investors.
The company is looking to strike a restructuring deal in the next few months. Following the announcement of the government’s investment, the shares of Atos have jumped nineteen percent.
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