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Airbus calls off planned acquisition of Atos cybersecurity group
1 Min Read
European aerospace conglomerate Airbus has cancelled plans to acquire French IT services company Atos’ Big Data and Security (BDS) business just weeks after opening negotiations for a potential purchase.
Neither company offered any explanation for the sudden development. Instead, in brief statements, both Atos and Airbus disclosed that discussions on the sale had ended.
Shares Plunge
“After careful consideration of all aspects of a potential acquisition of ATOS’ BDS (Big Data and Security) business line, Airbus has decided it will no longer pursue discussions with ATOS about this potential transaction,” Airbus said.
Atos said it was still analyzing the implications of Airbus’ decision and evaluating other options that align with “the sovereign imperatives of the French state.”
News of Airbus walking away from the deal — valued between $1.65 billion to $2 billion — sent shares of the troubled Atos spiraling downward on March 19 by 25% at one point. Since Jan. 2, the company’s shares have fallen over 70% from €6.99 ($7.59 USD at current exchange rates) to €1.74 (around $1.89 USD) at close of trading March 19. The crumbling deal also forced Atos to reschedule its 2023 earnings release to the “near future” while the company evaluated “strategic options.”
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