Feeds

French IT giant Atos is officially full of Bull.... and €620m lighter

Embiggened firm expects to hit no 2 spot in EU cloud

Top 5 reasons to deploy VMware with Tegile

IT services firm Atos is to purchase its French colleague Bull, which offers cloud, cybersecurity and big data to enterprise customers, for €620m (£503m, $845m).

The two firms currently sit at number five and 10 respectively in the top 10 cloud computing firms in Europe, but they reckon that together they could “create the number one European player in cloud operations and a leading cybersecurity solutions provider”.

According to Atos projections, their combined business would put them ahead of Microsoft and IBM and just behind Amazon in Western Europe.

Atos is offering €4.90 per share in cash, which is a 22 per cent premium over Bull’s closing stock price on Friday last week and a 30 per cent premium on the weighted average price of the last three months. The firm said it ultimately plans to delist Bull shares with a subsequent merger of the two companies.

The companies reckon that their new relationship will save them €30m a year within two-and-a-half years by accelerating the “One Bull” plan, reducing indirect costs by combining operations and support functions and savings from procurement and real estate.

In a presentation on the deal, Atos said that it saw the cloud services market growing at a compound annual rate of between 25 and 50 per cent a year over the next two years and buying Bull was a “unique opportunity to… create the European global IT leader in cloud, big data and cybersecurity”.

“Bull’s highly recognised teams in advanced technologies such as high computing power, data analytics management, and cybersecurity ideally complement Atos’ large scale operations,” said Atos chairman and chief Thierry Breton.

Atos shares added six per cent yesterday on the news to finish at €64.24, while Bull shares jumped to just under the offer price at €4.89, a lift of 22 per cent. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.