Atos - comment

Atos is blowing its own trumpet this morning, having secured a contract with the European Commission’s CLOUD II Dynamic Purchasing System for Cybersecurity. While it is always encouraging to see additional contract wins, the financial impact of this particular agreement appears limited. The total potential value of the contract is up to €326 million over four years. This represents approximately one per cent of Atos’s annual revenue, or around ten per cent of revenue within its Cybersecurity segment, which itself accounts for roughly ten per cent of the Group’s total revenue.

Although the company has described the contract as one of the most important cybersecurity service agreements in Europe, its financial materiality is likely to be limited.