Atos Origin, Siemens to create IT colossus

11th February 2011 By: Karel Smrcka

Atos Origin and Siemens have announced their intention to form a global stra- tegic partnership.

Siemens will contribute its Siemens IT Solutions & Services for €850-million to Atos Origin to create a European information technology (IT) champion. Siemens will become, for a period of at least five years, a sustainable shareholder of Atos Origin with a 15% stake.

The transaction will create a leading IT services company with pro forma 2010 revenues of about €8,7-billion and 78 500 employees worldwide. As part of the transaction, Siemens concluded a seven-year outsourcing contract worth around €5,5- billion, under which Atos Origin will provide managed services and systems integration to Siemens.

The new company will operate the largest European managed-services platform and will be positioned to deliver cloud computing services and market leading system integration solutions to significantly enhance its electronic payment and transaction-based activities.

Highlights of the Deal

The two organisations benefit from outstanding complementarities regarding customer base, geographies and services. Together, they form a strong combination, with a presence in 42 countries and 78 500 staff members worldwide. This will accelerate growth, increase shareholder value and enhance the services it offers its customers.

Following this deal, Atos Origin will be Europe’s foremost managed services company, according to market surveys, and will further enhance its scale, expertise and capacity to compete for big deals. It will also become a major-league player in cloud computing, which will be a major growth driver for years to come.

Managed services will account for 42% of revenues, consulting and systems inte- gration 33%, and specialised businesses 15%.

In terms of geography, Germany will represent 15%, France 19%, the UK 12%, Benelux 12%, Central and Eastern Europe 8%, Iberia 8%, the Americas 10% and Asia-Pacific 16%.

Manufacturing, retail and transports will account for 35% of revenue, public health 25%, financial services 20%, tele- coms and media 13% and energy and utilities 7%.

The deal reinforces the focus of Atos Origin on innovation and, in particular, its hi-tech transactional services business, where it sees high growth potential and attractive margins. The strategic partnership with Siemens will enable collaboration on large bids and joint research and development efforts in key niche markets to strengthen innovation and transactional services offerings.