(Bloomberg) — Atos SE, the French technology services provider, said it will seek partners for some legacy businesses as it shifts toward areas like cloud computing and security.
The company is looking for partners for operations comprising about 20% of group revenue, including its data-center hosting and call center units, Atos said in a statement Tuesday. The company also plans to team up with specialized players on some “sub-critical activities” so it can focus on core markets, according to the statement.
Shares of Atos closed up 0.9% Tuesday in Paris, after earlier rising as much as 3%. The stock remains down 45% this year, giving the company a market value of about 4.5 billion euros ($5.3 billion).
Bloomberg News reported earlier Tuesday that Atos was exploring the sale of some lower-margin legacy operations so it can focus on higher-growth businesses. Bloomberg Intelligence analyst Tamlin Bason wrote in a research note Tuesday that the decision “signals management’s willingness to explore all options to pivot toward fast-growing digital areas,” but Atos may find few suitors for some of the units.
Atos shares have been under pressure, particularly since a failed attempt at a transformation deal to acquire U.S. rival DXC Technology Co. earlier this year. One day last week, Atos shares closed at their lowest level since 2014.
“Pursuing a partnership, rather than an acquisition, may not alleviate the concerns raised earlier in the year when Atos’ tailspin began with its failed bid for DXC,” Bason wrote.
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