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With falling share prices, and looming debt, the company faces an uncertain future. Let’s delve into what led to the downfall of the firm.
Shivam Verma
Updated : Feb 15, 2024, 05:16 PM IST | Edited by : Shivam Verma
Once named as a powerhouse in the French business arena, Atos finds itself at a critical juncture as its fortunes take a nosedive. With falling share prices, and looming debt, the company faces an uncertain future. Let's delve into what led to the downfall of the French company.
Rise to prominence
Founded in 1997 through the merger of several IT providers, Atos went on a trajectory of growth and expansion. Notable acquisitions, including Siemens IT Solution and Services, Bull, Xerox ITO, and Syntel, propelled Atos to the forefront of the industry. By 2022, boasting a revenue of $12.1 billion and a workforce of 105,000 worldwide, Atos seemed unstoppable.
Factors behind the decline
However, a series of missteps marred Atos' once-stellar reputation. Failed ventures, such as the botched acquisition of US competitor DXC Technology Co, coupled with accounting errors and frequent leadership changes, eroded investor confidence. 
Furthermore, Atos struggled to adapt to the evolving landscape of cloud computing, resulting in dwindling profits, diminishing market value, and a staggering debt burden of €2.4 billion.
In a bid to stay afloat, Atos is considering selling off its legacy IT business while engaging in talks to offload its Strategic BDS unit to Airbus for €1.8 billion. According to Times of India, negotiations are underway with a court-appointed mediator to refinance their debt amidst legal challenges alleging management's lack of transparency.
The road ahead
The future of Atos depends on its ability to successfully navigate its debt restructuring, asset sales, and adapt to the changing IT terrain. With €2.4 billion in debt looming due in 2025, the company's survival remains uncertain. The outcome will not only shape the fate of Atos but also reverberate across its workforce, partners, and the broader French IT sector.
Atos stands at a crossroads, facing tough challenges as it makes efforts to bring back the once-illustrious legacy and chart a path forward in an increasingly competitive landscape.
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