European ATOS to IPO Worldline valued at $3 billion, then onto Acquisition Trail

European ATOS to IPO Worldline valued at $3 billion, then onto Acquisition Trail

Source – Bloomberg

Atos (ATO), a French computer-services provider, will split off its Worldline unit in an initial public offering valuing the business at about $3 billion, seeking to capitalize on demand for electronic paying.

The IPO is set to raise about 610 million euros ($826 million) through a sale of about 255 million euros of new shares and 355 million euros of existing shares, Paris-based Atos said today. Atos will keep a stake of about 70 percent.

Atos is divesting the payments unit to focus on areas such as cloud computing, or technology that allows data to be accessed remotely via the Web. Last month, Atos offered to buy rival Bull for about 620 million euros, underscoring demand for cybersecurity and cloud-computing services.

The price in Worldline’s IPO will be 16.40 euros to 20 euros a share, valuing the company at 2.16 billion euros to 2.64 billion euros. The exact price is expected to be determined June 26, Atos said. The stock will trade in Paris.

Worldline will seek acquisitions in Europe and could use as much as 1 billion euros for deals, Gilles Grapinet, the company’s chief executive officer, said today at a press conference in Paris. The company would help finance purchases through debt, and it could raise funds through a capital increase if needed, he said.

“We’ll seek acquisitions in segments like banking processes, where scale can generate big savings fast, and look for targets in services to retailers,” Grapinet said. “Overall, we’re more likely to make acquisitions in Europe.”

 

Source – Bloomberg

To contact the reporter on this story: Marie Mawad in Paris at mmawad1@bloomberg.net

To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net  Ville Heiskanen, Tom Lavell

 

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