Atos deal to sell its legacy service business falls through

French IT services company Atos has put an end to its attempts to sell its heading legacy managed infrastructure services business after failing to reach an agreement with a prospective buyer and will now have to glue the two halves of its business back together.

Exclusive talks with EP Equity Investment over the sale of the Tech Foundations business ended after the two parties failed to agree on deal terms and pricing. “We could not reach a mutually satisfactory agreement,” Atos group CEO Paul Saleh said in a conference call with press and analysts Wednesday. Neither party will pay a cancellation fee, and their only obligation will be to keep details of their negotiations secret.

Atos revealed the plan to split itself in two in 2022, after its larger rival, IBM, spun out its own managed infrastructure services business to form Kyndryl in November 2021.

Saleh hasn’t ruled out looking for another buyer, though, saying, “We will continue to consider strategic options for Atos for all of our assets in a way that best serves the interests of our customers, employees, and shareholders.”

Meanwhile, Atos will continue to operate both halves of the company, Tech Foundations and Eviden, as separate entities with a coordinated go-to-market strategy, he said.

Evidence includes the company’s transformation acceleration, smart platforms, cloud, digital security, advanced computing, and net zero transformation activities. The legacy Tech Foundations business manages hybrid cloud and infrastructure, digital workplace, digital business platforms, technology advisory and customized services.