France Bids €625 Million for Atos’s Computing Unit, Including Quantum Tech

Insider Brief

• France’s €625 million bid for Atos’s supercomputing and AI assets shows the nation is committed to safeguarding critical technologies, such as quantum and artificial intelligence, in defense, energy, and research.
• The move reflects a growing trend in Europe to treat advanced computing and quantum technologies as strategic assets requiring national control.
• Atos’s financial struggles and asset sales highlight the high-stakes race for leadership in quantum and AI amid rising global competition.

France is moving to secure control of Atos SE’s advanced computing assets with an offer of up to €625 million ($653 million), according to reports in multiple financial outlets.

The move reflects the nation’s interest in safeguarding its technological independence, the financial experts suggest.

The Advanced Computing business that the French state would take control of is now defined as its High-Performance Computing (HPC) & Quantum operations, as well as the Business Computing & Artificial intelligence divisions, the A Register is reporting.

The operations generated €570 million in revenue in 2023 and support critical industries such as nuclear energy, military operations and advanced scientific research, according to Bloomberg Business. The French government, keen to prevent foreign acquisitions of such strategic technology, has offered a non-binding proposal valuing the business at €500 million, with potential additional payments tied to future earnings.

This news marks the latest chapter in Atos’s efforts to stabilize after a series of financial setbacks, Bloomberg reported. Once a leader in France’s tech sector, Atos has been offloading assets to manage debts totaling €2.9 billion. Its valuation has fallen, with its shares trading at €0.32—an improvement after restructuring agreements but a far cry from past highs. The company’s financial restructuring is set to transfer ownership to creditors by early 2024.

France’s Strategic Priority For Quantum and AI Technologies

The inclusion of Atos’s supercomputers in the French offer is evidence of the critical role these machines play in what’s becoming high-stake industrial uses. Supercomputers and — at least theoretically — quantum computers are designed to perform complex calculations at extraordinary speeds that are essential for completing tasks ranging from climate modeling to the development of nuclear materials. The AI segment adds value by integrating machine learning capabilities into these computations, enabling faster and more precise results.

France has long prioritized maintaining control over technologies that intersect with defense, energy and national security, Bloomberg reports. The offer reflects broader trends in Europe, where governments are increasingly treating advanced computing and quantum technologies as national assets. Atos’s BDS division, for example, has a portfolio that includes cybersecurity systems also under review for potential sale.

A Strategic Deal with Political and Economic Implications

This isn’t France’s first attempt to acquire Atos’s advanced computing operations, according to the media sources. An earlier €700 million bid that also included cybersecurity assets expired without a deal. This time, the French government’s narrower focus could increase the chances of success. However, any final agreement will likely involve intense scrutiny, reflecting the French state’s role as both a regulator and a buyer.

Atos’s importance to industries central to France’s economy is amplifying the urgency of the deal for the French government. The company played a significant role in preparing for the Paris Olympic Games and is a key supplier to nuclear facilities. Protecting these capabilities from foreign ownership has become a a key facet of France’s tech policy.

Broader Challenges and Industry Interest

Atos is concurrently exploring a formal sale process for other parts of the BDS division, including its cybersecurity and mission-critical systems businesses, which collectively generated €340 million in 2023. According to Bloomberg, French defense giant Thales SA and European aerospace company Airbus SE have previously shown interest in parts of Atos’s assets, though no firm offers have been made. The potential buyers of these segments will need clearance from the French finance ministry, reflecting the high stakes involved in their transfer.

Earlier in November, Atos agreed to sell its Worldgrid energy-focused unit to Alten SA for €270 million. This deal is part of a broader strategy to simplify its operations and generate liquidity.

A Race For Advanced Computing Leadership

For Atos, the coming months will be critical. Philippe Salle, the company’s incoming CEO, will face the dual challenge of completing asset sales and charting a viable path forward.

The French government’s willingness to intervene offers a lifeline, but also underscores the national interest at stake. The bid is set in a backdrop of a global race for AI, quantum and advanced computing technologies that has intensified in recent years, with countries like China and the U.S. making significant investments. Europe, lagging in some respects, has focused on consolidating its existing assets. France’s offer to acquire Atos’s supercomputing capabilities reflects this approach, ensuring that vital technological infrastructure remains under national control.