The PRWIRE Press Releaseshttp://2004-03-17T17:57:00ZAtos origin takes Baton to become worldwide IT partner of Olympic Games2004-03-17T17:57:00Zatos-origin-takes-baton-to-become-worldwide-it-partner-of-olympic-gamesAtos Origin, a leading international information technology services company, today announced that it is the new Worldwide Information Technology (IT) Partner for the next three Olympic Games. The company assumes this role following the completion of its acquisition of SchlumbergerSema, which concluded on January 29, 2004.
"Through the acquisition, Atos Origin has created an international IT services company, and the Olympic Games represents the ideal environment to demonstrate our abilities to the world," said Jean Chevallier, executive vice president, Olympics, Atos Origin, formally vice president of SchlumbergerSema. "From the upcoming technical rehearsals in Athens to the closing ceremonies in Beijing, we will continue to make the IT services in each Games better than the last and exhibit the extraordinary results that our clients expect and demand."
The agreement with the International Olympic Committee (IOC) covers the next three Olympic Games: Athens, Greece in 2004, Torino, Italy in 2006 and Beijing, China in 2008. Atos Origin assumes primary responsibility for information technology at the Olympic Games including consulting, systems integration, operations management, information security and software applications development.
Atos Origin's core competency and focus is exclusive to business consulting, systems integration and managed operations. Through the partnership with the IOC, Atos Origin will illustrate its global expertise and leadership capabilities as one of the leading international IT systems integrators.
"We are pleased to be partnering with a worldwide systems integrator of Atos Origin's stature to power the Games in Athens, Torino and Beijing," said Phillippe Verveer, technology director for the International Olympic Committee. "With its core focus on systems integration design and operations management, Atos Origin is ideally suited to take over one of the most crucial responsibilities behind the Olympic Games. They are equally qualified to execute the knowledge transfer strategy of making each Games more efficient, yet state of the art."
"Atos Origin is extremely proud to have assumed the role of Worldwide IT Partner for the Olympic Games," said Bernard Bourigeaud, chief executive officer, Atos Origin. "This is one of the flagship contracts for the new company and we are committed to continue delivering the same high levels of professionalism, expertise and service as SchlumbergerSema - in fact, it is the same team that continues to manage the project under Atos Origin."
A Race to the Finish in Athens For the ATHENS 2004 Olympic Games, Atos Origin is now the lead systems integrator managing a consortium of technology expert partners and suppliers. When the Games go live in Athens this summer, a team of almost 2000 IT professionals and volunteers will manage all IT systems an services in the Technology Operations Centre (TOC) or "nerve centre" for the Games, primary and secondary data centres, and 60 competition and non-competition venues.
To date, all the core IT components of the Games have already been delivered to the ATHENS 2004 Organising Committee for the Olympic Games. They include the result information diffusion systems as well as the Games management systems including accommodation, transportation and accreditation.
In the next four months, Atos Origin will focus its energy on live technical rehearsals, which will conclude in mid June 2004. During these events, Atos Origin will push the network to its limits and benchmark the systems' performance. Atos Origin will also rehearse the level of achievement of its people, processes and procedures Ultimately, the extensive testing and preparation is undertaken to ensure that Atos Origin meets its unmoveable deadline of August 13, 2004, when the ATHENS 2004 Olympic Games begin.
Two More Legs to Go
Onsite teams for the 2006 Olympic Winter Games and 2008 Olympic Games have already begun preparations under the direction of Atos Origin's Major Events division located in Barcelona, Spain, which was part of the acquisition. Best practices regarding Games software, work flow patterns and systems designs from past events are being reviewed and integrated into plans for future Games to guarantee success in Turin and Beijing. Going forward, Atos Origin will continue to utilise and build upon the network design and applications expertise in Barcelona, and leverage its established full service, full lifecycle, 'design, build and operate' approach.
About Atos Origin
Atos Origin is an international information technology (IT) services company. Its business is turning client vision into results through the application of consulting, systems integration and managed operations. The company's annual revenues are more than EUR 5 billion and it employs 47,000 people in 50 countries. Atos Origin is the Worldwide Information Technology Partner for the ATHENS 2004, TORINO 2006, and BEIJING 2008 Olympic Games. For more information, please visit the company's web site at
http://www.atosorigin.comAtos Origin acquisition of SchlumbergerSema2003-09-22T19:00:00Zatos-origin-acquisition-of-schlumbergersemaAtos Origin today announced that it has signed an agreement to acquire the core IT services activities of SchlumbergerSema from Schlumberger. The agreement, which is expected to be completed no later than January 2004, is subject to regulatory approvals and approval by the shareholders of Atos Origin.
The transaction will create one of the leading global IT services companies, with combined annual revenues in excess of EUR 5 billion.
Highlights of the deal are as follows:
* Creating a global organisation with annual revenues of more than EUR 5 billion
* A combined workforce of 50,000 staff operating in 50 countries
* The new group will have a major presence in the critical UK market
* Together with a strong foothold in all key European markets.
* Reinforced presence in Outsourcing and Public Sector
Atos Origin and SchlumbergerSema have complementary geographic operations and key competencies, and the deal will strengthen the new company's offerings to its extended base of clients.
Atos Origin's primary strategy is to establish a strong and balanced presence in all of the major IT spending markets of Europe, in order to be able to provide comprehensive IT support services for its multinational client base. The acquisition of SchlumbergerSema creates an organisation with a leading presence in the IT services markets in France, Benelux, the United Kingdom, Spain and Italy and Atos Origin remains intent on achieving critical mass in the Central Europe region. The deal complements Atos Origin's strategy of providing extended support operations for its multinational clients in The Americas and Asia Pacific.
As consideration for the purchase of SchlumbergerSema, Atos Origin will deliver 19.3 million shares to Schlumberger including 0.3 million treasury shares, representing 28.9% of the outstanding capital of the combined group, together with EUR 400 million in cash. The transaction, based on the volume weighted average price of Atos Origin shares for the 20 days preceding September 19th, 2003 (EUR 45.9), values the purchase consideration at EUR 1,287 million.
Subsequent to closing, Schlumberger intends to reduce its shareholding in Atos Origin to 19%, which will improve Atos Origin's free float and stock liquidity.
As a result of this transaction Philips' shareholding will be diluted from 44.7% to 32.0%
Benefits of the Deal and Funding Structure
Schlumberger has agreed in principle to enter into an IT services agreement with Atos Origin with minimum revenues of US$700 million, subject to final agreement on pricing and service levels.
During the remainder of 2003, SchlumbergerSema's existing restructuring plans will be accelerated. Atos Origin intends to execute its merger plans rapidly, thereby achieving incremental top line growth, organisational streamlining and significant cost synergies. Cost savings in excess of EUR 200 million per annum are expected to accrue within two years and the deal will be accretive to earnings in 2004, before the costs of restructuring and goodwill amortisation.
At the completion of this deal, Atos Origin expects to have net debt of approximately EUR 750 million, representing a gearing level of around 50%. The group has negotiated a new syndicated loan facility for EUR 900 million with three major banks, which will provide adequate funding for the group's foreseeable needs. It is the group's intention to divest a number of non-strategic assets during 2004, which will enhance the group's strong operational cash flow.
Following shareholder and regulatory approvals, the new group will be led by Bernard Bourigeaud, Chairman of the Management Board and Chief Executive Officer. The composition and responsibilities of the new Management Board, which will take effect at closing, will be as follows:
Bernard Bourigeaud Chief Executive Officer
Xavier Flinois UK, The Americas and Asia Pacific
Coordinating Global Markets & Key Accounts/Olympics
Dominique Illien France and Central Europe
Coordinating Managed Operations, AtosEuronext & Worldline
Wilbert Kieboom Benelux/ICA and Scandinavia
Coordinating Consulting and Systems Integration
Giovanni Linari Italy, Spain, Middle East and Africa
Eric Guilhou Chief Financial Officer
Jans Tielman Human Resources and Communication
Once we have shareholders and regulatory approvals, an integrated sales organisation will be prepared in outline and plans will be determined for Atos Origin's large accounts program to be extended to integrate the major clients of SchlumbergerSema. The merged group is expected to be fully operational in January 2004 and will trade as Atos Origin.
An Exciting Venture
Bernard Bourigeaud, Atos Origin's Chief Executive commented:
"This transaction provides Atos Origin with critical mass in almost all of the major IT spending markets of Europe, together with strong extended support coverage on a global basis. This is absolutely essential if we are to provide our clients with effective support and have the capacity and flexibility to win major new clients.
The global IT services industry is going through an important phase of consolidation and Atos Origin intends to be at the forefront of this structural change. We are acquiring excellent management at SchlumbergerSema and fresh opportunities to drive top line and cost synergies. We will continue to execute our strategy and I am confident that the integration of our two companies will be a great success.
We are pleased and proud to welcome SchlumbergerSema staff worldwide. SchlumbergerSema is widely recognised for its competence and innovative technology, which will be of enormous value to our expanded client base."
About Atos Origin
Atos Origin is an international information technology services provider. Its business is turning client vision into results through the application of consulting, systems integration and managed operations, including outsourcing and on-line services. In August 2002, Atos Origin acquired KPMG Consulting in the UK and The Netherlands, trading as Atos KPMG Consulting. The company currently generates annual revenues of EUR 3 billion and employs 28,000 staff in 30 countries. The Group's client list includes major companies such as ABN AMRO, Akzo-Nobel, Alstom, BNP Paribas, BP, Euronext, Fiat, ICI, ING, KPN, Lucent, Philips, Renault, Royal Bank of Scotland, Saudi Aramco, Shell, UBS Warburg, Unilever, Vivendi Universal, Vodafone and Wolters Kluwer.
For more information, please visit the company's web site at http://www.atosorigin.com
Schlumberger is a global oilfield and information services company with major activity in the energy industry. The company employs 78,000 people of more than 140 nationalities working in 100 countries and comprises three primary business segments. Schlumberger Oilfield Services is the world's premier oilfield services company supplying a wide range of technology services and solutions to the international oil and gas industry. WesternGeco, jointly owned with Baker Hughes, is the world's largest and most advanced surface seismic company. SchlumbergerSema is a leading supplier of IT consulting, systems integration, and network and infrastructure services and employs approximately 22,000 staff in more than 40 countries. In 2002, Schlumberger operating revenue was $13.2 billion of which SchlumbergerSema generated just under $3 billion. The activities being acquired by Atos currently produce annual revenues of approximately $2.6 billion. For more information, visit slb.com. Atos Origin 2001 Annual Results:2002-03-13T22:00:00Zatos-origin-2001-annual-resultsAtos Origin, a leading European information technology services provider, today announced results for the year ended 31 December 2001. Revenues increased by 7.3%, to EUR 3,038 million and net income after goodwill amortisation was EUR 123 million, an increase of 74% compared with the previous year. The merger has been completed in record time and the financial results are ahead of the targets we set at the time of announcing the merger.
In Euro Millions FY 2001 FY 2000 % change
Revenue 3,038 2,830 + 7.3%
Income from Operations 261.2 175.2 + 49.1%
Operating margin % 8.6% 6.2% + 2.4 pts
Net Income 123.0 70.5 + 74.5%
EPS before Goodwill (Euros) 3.34 2.06 + 62.1%
EPS after Goodwill (Euros) 2.81 1.61 + 74.5%
Extracts from the statement by Bernard Bourigeaud, Chairman of the Management Board and Chief Executive Officer:
"Merger completed in Record Time, Financials on Track"
"2001 was a milestone year for the company, during which the merger between Atos and Origin was completed in record time.
Our main financial focus has been, and continues to be, the profitability of the business. In 2001 we surpassed the target that we set ourselves at the time of the merger by achieving an operating profit of EUR 261 million, which was nearly 50% higher than a year ago. The operating margin was 8.6 per cent, compared with 6.2 per cent in 2000. Net income after goodwill amortisation was EUR 123 million, compared with EUR 70.5 million, an increase of 74 %.
The new company's operations have been radically reorganized and the financial results for 2001 demonstrate the substantial benefits that have been achieved. Immediately following the merger we acted swiftly to stem operating losses in several countries and to dispose of low-margin businesses. Corporate costs were halved and direct and indirect costs reduced substantially, thereby delivering better utilisation and productivity across all of our businesses. We have also exploited the enhanced purchasing power of the new group to reduce costs in 2001, and negotiated significant follow-on savings that will take effect in 2002.
"Success in a Tough Environment"
Total group revenues increased to EUR 3,038 million, compared with EUR 2,830 million in 2000, which was an increase of 7.3 per cent. This result was achieved in spite of the fact that trading conditions in North America and Asia Pacific were tough throughout the year, and became more difficult in Europe during the second half. Revenue growth in our Managed Services business was strong but activity in Consulting & Systems Integration and On-Line Services was comparatively flat, in line with experience throughout the sector. The main exception was enterprise resource planning (ERP), where there was solid demand for the company's substantial SAP implementation capabilities.
Considerable time and attention has been devoted to strengthening our global client relationships and account management program and to building up our International Competence Centre (ICA), which supports the roll-out of major contracts. The global account program, which now focuses on the top 42 customers and contributes more than 55% of total group revenues, had tremendous success. Excluding our largest client, Philips, revenue growth among this key group was more than 25% in 2001.
"Significant Commercial Wins"
During 2001 the company won a major contract with KPN, the Dutch telecommunications provider, to take over its Datacenter operations. The 6-year contract will generate revenues of EUR 220 million in 2002, with a guarantee of not less than EUR 1.1 billion during the first six years.
In recent months we have been negotiating for additional business with KPN, which is now our second largest customer after Philips. Last month we signed a letter of intent to manage desktop support operations for KPN. I expect to be able to announce full financial details for this contract at completion, which should take place before the end of April 2002.
"Concentrating on Core Activities"
At the time of the merger I said that we intended to dispose of businesses with annual revenues of approximately EUR 200 million. So far we have completed the disposal of operations generating revenues up to a value of EUR 130 million per annum and there are several other activities that we intend to divest during 2002.
"A Continuing Focus on the Bottom Line"
In 2002 we expect that there will be further opportunities in the outsourcing market, but that trading conditions in Consulting and Systems Integration will continue to be difficult. It is for that reason that we reduced our indication for overall revenue growth this year to between 7-9%. At the same time, however, we are maintaining a tight rein on the company's cost base and a strong focus on raising the operating profit margin to 10%, which is our principal target in 2002.
We are rigorously managing recruitment, staff turnover and utilisation levels, and are currently in the process of reducing significantly the number of subcontractors. We have taken steps to reduce cost still further through the effective use of central purchasing. We expect these and all other actions above to have a positive impact on operating margins early in 2002.
"Strategy - A Client-centric Company with Global Operations"
The IT services industry is undergoing a period of consolidation in response to the increasingly global nature of business activity. In Atos Origin our strategy is directly derived from the strategies of our clients. We already have a large base of global clients and it is important that we extend our business so that we are able to provide end-to-end solutions in the key geographies and industry sectors where we operate.
Because we believe it will provide competitive advantage, we want to retain a balance between Managed Services - with its long-term recurring revenues and good order book visibility - and the Consulting and Systems Integration business, with its potential for rapid growth. In order to improve the knowledge we have of our client's business, we want to build a strong and focused consulting capability to help us leverage our IT activities.
The most important strategic priority is to increase our size in Germany and the UK. Together with our existing strengths in France and the Netherlands this will create a leading IT service company with significant presence in the four main European markets. The USA and Asia Pacific are key areas for expansion in the future, once we have consolidated our position in Europe.
About Atos Origin
Atos Origin is a leading international business and technology integrator. Its business is turning client visions into results through the application of management consulting, enterprise, e-business and outsourcing solutions. The company has annual revenues of more than EUR 3 billion, operates in more than 30 countries worldwide and has 27,000 employees. Atos Origin's clients include ABN-Amro, Alstom, BNP Paribas, Euronext, Fiat, ICI, Lucent, Philips, Renault, Saudi Aramco, Shell, Unilever, Vivendi Universal and Wolters Kluwer.
For more information, please visit the company's web site at http://www.atosorigin.comAtos Origin wins five-year outsourcing deal with Capral Aluminium2001-06-08T16:00:00Zatos-origin-wins-five-year-outsourcing-deal-with-capral-aluminium