LONDON (ShareCast) - (Sharecast News) - Shares in Atos fell sharply on Tuesday after the French tech giant announced plans to break itself up as well as the surprise departure of its newly-installed chief executive.
The firm is considering splitting into two listed companies by spinning out its digital, big data and cybersecurity units into one business provisionally called Evidian. The remaining businesses would retain the Atos name and be focused around its Tech Foundations unit, a specialist in managed infrastructure services, digital workplace and professional services.

Rodolphe Belmer, who took over as chief executive in January, said: "Today we announce our intention to take the in-depth transformation of the group, started at the beginning of the year, one step further. The potential path for Atos would aim to optimise the two distinct markets that the group operates in, both with fundamentally different dynamics.

"Separating these two businesses would create two companies, leaders in their respective segments with proven and recognised track records."

However, in a separate announcement, the company acknowledged that the proposed break up would lead to a "significant reduction" in the scope of the chief executive's role. "Taking note of this evolution, Mr Belmer considered that he had no choice but to resign," it added.

The surprise series of announcements, made ahead of the firm's capital markets day, caught investors off guard and by 1130 BST the Paris-listed stock had lost 21%.

Belmer, who is reported to have clashed with the board over the future of the company, will leave on 30 September. He will be replaced by Nourdine Bihmane, who has been appointed deputy chief executive in charge of Tech Foundations, and Philippe Oliva, deputy chief executive of the businesses that will form Evidian.

Oliva will run Evidian and Bihmane Atos once the break up is complete.

The businesses that will form Evidian generated combined revenues of €4.9bn in 2021, a 5% rise year-on-year, while Tech Foundations made €5.4bn, down 12%.

Should the break-up go ahead - which the company estimates will cost €1.6bn in the 2022-23 financial year - Evidian is expected to float by the end of 2023. Around €700m of assets are expected to be sold.

Atos is a strategic company for the French government because it manufactures much of the technology used by the country's army and finance ministry, and former prime minister Edouard Philippe sits on the board.

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