Technology Slice Blog

Atos Origin to Buy Siemens IT - French information-technology company Atos Origin SA has agreed to buy Siemens AG's IT Solutions and Services business for €850 million ($1.14 billion). The companies said Tuesday the deal aims to create a "European IT champion," which would compete with International Business Machines Corp. and Capgemini, among others. As part of the deal, Atos Origin will issue 12.5 million shares, currently valued at €414 million, giving Siemens a 15% stake that the German industrial conglomerate will hold for at least five years. Atos Origin also will pay €186 million in cash and issue a €250 million convertible bond that will be held by Siemens. The company created by the deal will have 78,500 employees and about €8.7 billion in annual revenue, with sales expected to reach €9 billion to €10 billion range by 2013. Atos Origin will receive a seven-year, €5.5 billion outsourcing contract from Siemens. The two companies expect the transaction to b...