Airbus is currently engaged in advanced discussions with Atos to potentially acquire its cybersecurity division, BDS. This development has reignited interest in a significant French security asset, despite facing opposition from Airbus investors earlier this year.
According to a reliable source, talks regarding the purchase of BDS, which plays a crucial role in securing communications for French military and intelligence agencies while also building servers for supercomputers, are underway. The discussions indicate a renewed effort, as previous attempts by Airbus to acquire a minority stake in the related entity earlier this year faced obstacles from investors.
Market Surge and Setbacks
Le Figaro’s report on these discussions led to a notable surge in Atos shares, rising by 21%. It is noteworthy that had experienced a setback in March when Airbus decided against making an offer for a 29.9% stake in Atos’ division Evidian (later renamed Eviden). Airbus CEO Guillaume Faury, at that time, expressed openness to a strategic partnership, emphasizing the increasing role of big data, connectivity, and high-power computing in the aerospace sector.
The current talks between Airbus and Atos suggest a more targeted approach, specifically focusing on the purchase of the BDS business. The move comes after the initial idea of acquiring a stake in Evidian faced opposition from investors, including hedge fund manager Christopher Hohn, who raised concerns about the financial leverage and potential impact on Airbus’ business quality.
The potential deal for BDS is estimated to be valued between 1.5 to 2.5 billion euros, according to Jefferies analysts. However, they caution that Airbus may need to defend against perceptions that the deal is politically driven, possibly aimed at funding Atos’ transformation plan. The scrutiny surrounding Atos has been heightened in recent times, with its shares facing challenges and governance instability.
Leadership Transition at Atos and Complex Deals
The situation at Atos took a new turn two months ago when Jean-Pierre Mustier, a former CEO of UniCredit, assumed leadership of the board, succeeding Bertrand Meunier. Mustier’s role involves navigating a complex deal with Czech billionaire Daniel Kretinsky, which includes a 900 million-euro capital increase for Eviden, encompassing BDS.
Airbus, currently undergoing internal reorganization, is keen on maintaining control over assets crucial to its position in the software-focused defense industry. There is concern that absorption of Atos activities by a competitor, such as French defense electronics maker Thales, could pose a risk. Despite Thales’ recent acquisitions, it has denied any interest in buying a stake in Eviden. The earlier challenges with Atos have added pressure on Airbus CEO Faury to refine the company’s strategic focus beyond its core civil aviation operations.
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