Ahead of the pre-planned €5 billion carve-out, Atos has reportedly unveiled its Eviden brand.
In June 2022, Atos – the leading French multinational IT service and consulting company – announced to curate strategies to split itself down the middle.
As planned, the company has cleaved itself in two, with its burgeoning digital, big data, and security (BDS) lines to operate as Eviden, according to Consultancy Europe.
The other half, which comprises the business’s tech foundations business line, will continue under the Atos name. To differentiate this carved-out, future entity from the current Atos business, the company is addressing it as TFCo for now.
Breaking Down the Carve-out
The split-up, costing around €1.5 billion, is planned to be “effective at the earliest on July 1, 2023, and at the latest on December 31, 2023”. The brand of the spin-off business was launched in April this year.
The new business, initially slated to be launched as Evidian, later spun out from Atosunder the name “Eviden,” retaining the same etymology (“evidence”).
The post-carve-out Atos business is planned to constitute the Digital Workplace, Data Centre and Hosting, Unified Communications, and Business Process Outsourcing units of Atos.
Operating within the Atos business and trading as “Eviden, an Atos business,” the spin-off company also includes the Atos Consulting business.
Eviden – which comprises the shrinking units of the parent company – would have a headcount of roughly 48000 globally and revenues of around €5.4B.
Atos has confirmed to invest €1.1 billion during the 2022-2026 period as part of its effort to support a return on investment (ROI).
Fleshing Out the Reasons Behind the Split-up
After conducting a “preliminary strategic review,” Atos, one of the world’s leading IT businesses with revenues of €11 billion – decided to split itself into two separate entities in order to “unlock more value” for the stakeholders.
However, tough economic headwinds facing the company have been marked as the key reason behind the spin-off.
Even though the IT business is expanding at a breakneck pace globally, last year, Atos saw a sharp decline of 3% in its revenue. Earlier this year, the technology consulting giant issued its third profit warning due to the significant difference in the financial KPIs, causing the company’s shares to plunge to their lowest since mid-2022.
The strategy Atos adopted to cleave itself in two businesses is similar to how IBM spun out its $19B managed infrastructure services into Kyndryl in November 2021.
According to its hot-off-the-presses site, Eviden is committed to turning out as a global leader in “data-driven, trusted and sustainable digital transformation,” bringing together the digital, cloud, and big data & security business lines of the parent company Atos.
Billing itself as “one of the largest carve-outs the industry has ever seen,” Eviden demonstrates its vision to “expand the possibilities of data and technology”.
That said, being a highly intricate and cross-functional process, a carve-out transaction needs to be executed carefully and by experts.
For any dynamic business looking to maximise its transaction value, investing in an expert carve-out consulting service like Fission Consulting is a logical investment.
A high-end service helps streamline the slew of complex and lengthy processes to speed up the overall separation timeline while ensuring data accuracy.
Wrapping Up
Nikki Kelly, former Senior Vice President for Public Sector and Defence in Northern Europe at Atos has been elected as the CEO of Northern Europe & APAC for Eviden, an Atos company.
“I’m excited to start my new role with Eviden as the CEO for Northern Europe & Asia Pacific,” stated the newly appointed CEO. “A once-in-a-lifetime opportunity to help scale a €5 billion new company with deep industry expertise, innovation in our DNA, helping our clients to be competitive and deliver secure, digital business solutions quickly at scale.”
