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Atos agrees to sell Worldgrid unit to Alten for €270 million (US$294 million) to tackle debt.

Atos SE, the struggling French technology company, has agreed to sell its Worldgrid unit for €270 million (US$294 million), which is inclusive of debt, to Alten SA. This is a French engineering and tech consultant that will gain necessary regulatory approvals over its purchase. The company in its statement said this will be completed before the year's end.

It specializes in consulting and engineering in service for utility companies. Part of its selling of some assets to reduce high debt this way, Atos prevents bankruptcy as it tries hard to overcome some financial weaknesses, which are an important business partner to significant industries and enterprises in France, beginning with nuclear power plants or the Olympic Games in Paris last summer.

Atos was in dire straits financially, and measures needed to be taken sharply. A French commercial court okayed Atos's restructuring plan in June last. This means the company was able to draw new funds to go ahead with its operations and the creditors took charge of the company.

The French government previously expressed interest in buying significant portions of Atos's big data and security unit for an enterprise value of €700 million, or $758 million. The deal was meant to give the state control over its supercomputers, its critical systems, and the cybersecurity operations. However, that non-binding bid had expired last month without coming to terms.

One crucial step that would address some of the financial challenges experienced at the moment is the sale of the Worldgrid unit to Atos. Non-core asset divestitures bring operations back on stable tracks. New investors may take an interest and change their position in the market.

Recently, the criticism has been about the money management of Atos. The sale to Alten is an attempt at rehabilitation. The company feels the pressure to prove itself by the ability to get stabilized and regain confidence in investors.

This acquisition would mean that the sale of Worldgrid would give Atos the much-needed capital to rebuild its financial muscles. The deal also points to a continuing interest in consulting and engineering services by utilities.

Signing this contract means that Atos will be left with more freedom to devote its energy to core business lines. The firm is committed to innovation that will result in improving service delivery for better competitive advantages in technology marketplaces.