The Channel logo

News

By | Kelly Fiveash 15th December 2010 11:10

Atos Origin buys Siemens IT wing in €850m deal

Breakfast of 'European IT champions'. Or something

French services giant Atos Origin is buying Siemens IT unit Solutions and Services (SIS), after signing an €850m deal with the German multinational.

Under the agreement, Siemens will be a “sustainable shareholder” of Atos Origin for at least the next five years, with a 15 per cent stake, or 12.5 million shares, worth €414m.

Siemens will also be handed a five-year convertible bond of €250m and a cash payout of €186m.

Atos Origin said the acquisition would bring in pro forma 2010 sales of around €8.7bn and bump up the company’s staff headcount to 78,500 workers worldwide.

But SIS will be hit with job cuts with a workforce reduction of 1,750 people planned.

The deal will also have a “considerable negative earnings impact” in Siemens 2011 financial year.

As part of the agreement Siemens said it had concluded a seven-year outsourcing contract with Atos Origin worth around €5.5bn. Under that global deal, the French services outfit will manage Siemens’ systems and IT infrastructure.

The two companies hope that their combined effort will create a “European IT champion”. ®

comment icon Read 3 comments on this article alert Send corrections

Opinion

Windows 10 on Surface 3

Tim Anderson

It's do-or-die for Microsoft's new operating system on 29 July
Wine Taps by N Wong, Flickr, CC 2.0 License

Simon Sharwood

Clouds sell compute by the glass. On-premises kitmakers want to sell wine-as-a-service

Greg Knieriemen

Privacy, security, information sovereignty, what we all want, right?
Microsoft's Joe Belfiore, speaking at Build 2015

Andrew Orlowski

Redmond devotees may as well have demanded manga desktop wallpaper

Features

Android icon desktop toys
Nice devices, now speak 'enterprise' to me
Standard Form 86 reads like a biography of each intelligence worker
Protestor barricade image via Shutterstock
Breaking through the hardware barricades to a new network state
Racecar