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    Atos Purchases Gemalto

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    #TECHNOLOGY NEWS DECEMBER 11, 2017 / 11:17 PM / UPDATED 3 MINUTES AGO

    Atos offers to buy Gemalto for 4.3 billion


    euros to boost cyber security services
    Mathieu Rosemain, Cyril Altmeyer 3 MIN READ

    PARIS (Reuters) - French technology consulting firm Atos ATO.O offered to buy Gemalto
    GTO.AS for 4.3 billion euros ($5.06 billion) on Monday to boost its cyber security services
    as states and big corporations seek to cope with a growing number of attacks on the Internet
    worldwide.

    FILE PHOTO - Atos Chairman and CEO Thierry Breton poses in front of the company's
    logo during a presentation of the new Bull sequana supercomputer in Paris, France, April
    12, 2016. REUTERS/Philippe Wojazer
    The bid comes as Gemalto, the worlds largest maker of chips found in mobile phones and
    credit cards, is under pressure after posting four profit warnings in a year and having missed
    a chance to strengthen its security business through a large acquisition.

    The combination would strengthen Atos in the burgeoning so-called Internet of Things
    (IoT) sector of internet-connected machinery and household devices able to collect and
    exchange data using embedded sensors and European payment services on top of digital
    security, it said.

    Atos said it delivered an offer to Gemaltos board on Nov. 28.

    Shortly after issuing the formal offer, Atos Chief Executive Thierry Breton said he had
    already received the backing of Gemaltos biggest shareholder, Frances state-owned
    investment bank Bpifrance.

    Ive met the main shareholders and Bpi in particular, Breton said in a call with reporters
    following the announcement of the unsolicited bid for Gemalto.

    Bpi is not only favorable to this operation of European consolidation, but it also
    authorized me to tell you about it, he added.

    Bpifrance holds 8.51 percent of Gemaltos shares, according to the groups last annual
    report. Gemalto and Bpifrance were not immediately reachable for comment.

    STOCK PRESSURED

    Gemalto had to postpone to March 2018 the presentation the presentation of its next
    multiyear strategic plan, after several profit warnings notably caused by slowing demand
    for credit card chips.

    The groups shares have shed 38 percent so far this year compared with an increase of 24
    percent for Atos.

    Since Breton took the helm of Atos in November 2008, the firm has multiplied its stock
    price by close to six times, outperforming French rival Capgemini CAPP.PA and U.S.
    companies Accenture ACN.N and IBM IBM.N.
    Atos revenue has more than doubled over the period to reach 11.7 billion euros in 2016,
    after having bought assets from Germanys Siemens SIEGn.DE, U.S. group Xerox XRX.N
    and France-based computer company Bull.

    Gemalto had sales of 3.2 billion euros in 2016.

    The all-cash bid reflects a price of 46 euros per Gemalto share, representing a 42 percent
    premium on the groups last closing price, Atos said in a statement.

    The bid would be financed by Atos existing cash resources and debt, the company said
    without elaborating.

    Breton said that two banks had already given their approval for a potential loan.

    ($1 = 0.8495 euros)

    Editing by G Crosse

    Disclaimer Privacy Reuters Plus

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    2017 Reuters. All Rights Reserved.

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