Atos SE (ATO) Notes

July 21, 2022 Update

  • French IT conglomerate with an ADR.

  • Going to be spinning off their Digital, Big Data, and Security businesses into a company called Evidian.

  • Timing: Second half of 2023 but I wouldn’t be surprised if it slipped into 2024 (french company, bureaucratic, etc.)

  • Spin-off business had 5% organic revenue growth in 2021 and is expecting 8% in 2022.

  • RemainCo looks like a bit of a disaster.

  • Presentation.

  • Kind of a mess. Horrible chart but probably real value there if they ever get to spin-off.

  • Questions/Strategy:

    • Wait until closer to spin-off data to see if progress is being made and fundamentals have improved.

    • SOTP story so there will be a lot of time to wait.