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

Chris Mellor

How long before Blue Big HQ pulls the plug on the whole thing?

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust