Atos buys IT services firm Schlumberger Sema at heavy discount

PARIS (AFP) Sep 22, 2003
The Franco-Dutch computer services company Atos Origin has acquired the IT services firm Schlumberger Sema, Atos said Monday, paying one quarter of the value put on the company two years ago.

The new deal is worth 1.287 billion euros (1.5 billion dollars), of which 400 million euros is to be paid in cash, a company statement said.

Atos is to settle the rest with 19.3 million of its own shares, handing over 28.9 percent of its capital to the parent Schlumberger group, which is specialised in oil drilling and industrial equipment.

The chairman of Atos Origin, Bernard Bourigeaud, said his company would sell parts of the new entity to raise 500 million euros within 12-18 months.

Speaking at a press conference, he declined to say which assets would be sold, however.

Schlumberger had acquired Sema in April 2001 through a friendly bid worth 5.2 billion euros.

Once the takeover is finalised, Schlumberger intends to reduce its Atos holding to 19 percent, "which will improve the float and the liquidity of Atos Origin shares on the market," the company said.

The float refers to shares not held in blocs by large shareholders and which trade more freely on stock exchanges.

At the same time, the Dutch electronics group Philips' stake in Atos will drop from 44.7 to 32 percent, the statement said.

Atos is a top European information technologies (IT) services and consultancy group with a strong presence in computer systems for stock markets, and is seen as a leading indicator for technology issues in general.

Its shares reacted favorably Monday to news of the deal, gaining 1.4 percent to 49.20 euros in morning trading on the Paris stock exchange, where the CAC-40 index had fallen sharply overall.

"The transaction price seems very reasonable," said analysts at Deutsche Bank.

"The size of the new entity will approach that of Cap Gemini, with much more exposure to Europe."

Dealers said the timing of the deal was also positive for Atos Origin, as its shares are currently trading near 14-month highs.

Analysts at Global Equities in Paris estimated Atos paid 0.5 times Schlumberger Sema's annual sales, compared to an average sector valuation of 0.9 times revenues.

"At this price, who could refuse?" the brokerage asked.

SPACE.WIRE