On December 14, French tech consultancy Atos Origin announced that it had bought out the IT Solutions and Services division of German conglomerate Siemens. The acquisition, which also sees Siemens acquire a 15 percent stake in Atos, will result in a single entity that both companies are bizarrely (but hilariously) labeling "a European IT Champion".
Once officially united, the "IT Champion" will be the largest of its kind in Europe. The new entity, which will presumably keep the name Atos Origin, will staff 78,500 employees in offices across the globe. The once-distinct pair brought in a combined €8.7 billion in revenue this year; firm representatives say that they plan to grow that to between €9 and €10 billion by 2013, which would put them among the largest IT services institutions in the world.
A major result of the combination also sees Atos and Siemens form a "strategic partnership" as evidenced by the nature of the financial transaction; around half of the €850 million Atos forked over for the IT division will be paid in shares of Atos stock—a give-and-take acquisition meant to formalize cooperation. Initially, cooperation will entail Siemens' help in ensuring a smooth integration process; ultimately, Atos consultants plan to put Siemens' considerable sales resources to use selling their own services. For at least seven years, the pair will also share the same "IT backbone", and both intend to invest millions toward joint innovation programs.
Peter Löscher, CEO of Siemens, said "We are creating a European Champion. The two organizations benefit from out-standing complementarities regarding customer base, geographies and services. As a future sustainable shareholder and strategic partner of the new company we demonstrate our confidence in the value add created by this transaction for the Siemens IT Solutions and Services employees, our shareholders and customers.
Thierry Breton, Löscher's counterpart at Atos Origin, added “Today marks the start of a very solid and promising long term industrial alliance be-tween Atos Origin and Siemens that will create a most attractive powerhouse in IT and hi-tech transactional Services in Europe."
What's with the random hyphenations, Cham-pions?
For more information (and a bit more Engrish):
Atos Origin and Siemens to create a European IT Champion
- Sam Reynolds
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