Atos SE, a French multinational information technology service and consulting company has acquired three companies as the IT firm continues its series of bolt-on acquisitions while reporting a drop in the first quarter revenue.
French IT consulting group Atos reported a drop in first-quarter revenue on Tuesday, putting further pressure on its share price which has been hit by an accounting issue in the United States. The company has purchased Processia which is a Canada based firm along with Ipsotek which is headquartered in UK.
Atos has also bagged German cyber security company ‘Cryptovision’ in the process. The company gave no financial details of the transactions, and said the deals were expected to close in the second and third quarter of the year.
Atos SE provides solutions such as hybrid cloud and data base services along with various digital apps and virtual workplace support. The company has already revealed the information that auditors have noticed some accounting errors at its two units based in United States which has badly impacted the share price of the company in the stock market.
The firm came to the point where the management took the decision to go for the complete review of its accounting of the offices in the US.
In February, Atos and US rival DXC Technology took the decision to stop the long lasted negotiation about the proposed IT consulting group’s largest acquisition to the date, with the estimated value of more than $10 billion.
Atos is a Paris-based is currently providing different business applications along for digital workplace. Recently the management found accounting errors at those units, leading the shares to slump which affected the global business of the company.
However, Atos confirmed its full-year guidance of revenue growth of around 4% and an operating margin of around 9%. Atos inked multiple acquisitions with an aim to reach the target of 60% share in cyber security and decarbonisation domain.
After the complete review, the firm has promised to come with a complete update during the result of second quarter. Atos has also signed a contract in Japan to deliver the solutions for the plans of Olympic Games in which will be held in Tokyo.
The company claims that it has already done the required work for any situation, including a further extension of few weeks or even a few months. For the Atos, there will not be any such cancellation of the signed deal even if the organisers decide to completely cancel the Olympics, as per the statement of the head of investor relations Gilles Arditti said in a conference call.
Atos share slumped in the market by 5% when the firm disclosed the information that its revenue for first quarter has dropped just before inking the multiple deals.
Currently, the company is developing IT solutions for its multiple global clients who have already signed long-term service contracts with the firm. However, the revenue of the company has shown a small drop by 2 percent at $3.20 billion in the current year.
However, a series of bold-on acquisitions is tagged as a move to bounce back from the short-term sales drop and an engagement in the important steps of internal transformation by the CEO Elie Girard.
