Airbus Explores Acquisition of Atos Cybersecurity Unit

• Airbus in talks to buy Atos’ BDS for French military comms.
• Valued at 1.5-2.5 billion euros.
• Part of Airbus strategy, facing scrutiny to avoid political impact.

Airbus is reportedly in advanced talks with Atos to acquire its cybersecurity division, BDS (formerly part of Evidian), a move that reignites interest in a key French security asset.

The news comes after Airbus faced opposition from its investors earlier this year when it initially sought a minority stake in the Atos division.

The cybersecurity unit, BDS, is responsible for securing communications for French military and intelligence agencies, as well as constructing servers for supercomputers. Atos shares surged by 21% following reports of the ongoing discussions. Airbus had earlier abandoned plans to acquire a 29.9% stake in Atos’ division Evidian, now called Eviden, but expressed openness to a strategic partnership.

Airbus CEO Guillaume Faury emphasized the significance of big data, connectivity, and high-power computing in the aerospace industry. The renewed talks suggest a more focused purchase of the BDS business, with Airbus engaging directly with the Atos board. The deal is anticipated to be valued between 1.5-2.5 billion euros, according to Jefferies analysts.

The potential acquisition is not without challenges, as it could face scrutiny to ensure it is not perceived as politically driven. Atos, which has experienced governance instability and setbacks in recent times, has undergone changes with Jean-Pierre Mustier taking over as chairman.

The move is part of Airbus’ broader strategy to reorganize, allowing Faury to concentrate on addressing challenges in the defense and space sectors. The company is concerned about the impact on its position in the software-focused defense industry if the Atos activities were absorbed by a competitor, such as Thales. Despite Thales denying interest in a stake in Eviden, the dynamics of the deal could undergo further scrutiny.

As talks progress, both Atos and Airbus have refrained from commenting on market rumors, highlighting the sensitivity and complexity of the potential acquisition.

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