Butler Industries Joins Onepoint in Atos Rescue Consortium

April 8, 2024: Struggling French IT services giant Atos received a potential lifeline with the announcement that investment firm Butler Industries is joining forces with Onepoint, Atos’s largest shareholder. This consortium aims to formulate a rescue plan to prevent Atos from collapsing due to its significant debt burden.

Onepoint, which currently holds an 11.4% stake in Atos, previously announced its intention to lead a restructuring effort. Butler Industries’ addition to the consortium strengthens this initiative. Financial details regarding Butler Industries’ involvement have not been made public.

The consortium’s overarching goal is to revitalize Atos and establish it as a preeminent European player in digital technology, cybersecurity, and artificial intelligence. Additionally, the plan seeks to solidify Atos’s position as Europe’s leading provider of sovereign cloud services, a type of cloud computing infrastructure controlled by a government.

Onepoint’s CEO, David Layani, expressed his satisfaction with Butler Industries’ participation, highlighting the firm’s experience in restructuring operations. He stated that Butler Industries’ involvement strengthens the “OneAtos” project, the official name for the consortium’s rescue plan.

Atos is currently grappling with nearly $5 billion in debt and has been engaged in ongoing discussions with its creditors to restructure its finances. The company is scheduled to hold a call with its creditors on April 8th, 2024, to discuss these efforts further.

The news of Butler Industries joining the rescue consortium resulted in a positive reaction from Atos’s investors. The company’s shares experienced a surge of over 25% in morning trading on the Paris Bourse. This significant rise in share price reflects investor optimism regarding the potential success of the consortium’s rescue plan.

The addition of Butler Industries to the consortium injects a dose of optimism into Atos’ future. The combined expertise of Onepoint and Butler Industries and the restructuring plan they intend to unveil by the end of April 2024 offers hope for Atos’s recovery.