Atos with Gemalto: on its way to become a full digital services provider

This deal will reinforce Atos’ capacities and commercial footprint on a global scale:

  • First, for payments, the synergies between Worldline and Gemalto are huge as clients will benefit from end-to-end capabilities, from hardware to business process outsourcing.
  • Second, in cyber security and digital transformation, with highly complementary offerings and technologies. Gemalto’s offerings in identity and access management, data encryption and crypto management strongly complement Atos’ capabilities in cyber security, but also in artificial intelligence, big data, IoT, high-performance computers, and cloud computing.

In addition, Atos and Gemalto maintain quite similar business and engineering cultures with strong French roots, and Atos is a powerful M&A integration machine, with a successful track record. This is already enough to validate a more than €4bn deal, however if we analyze this potential merger in a bit more detail, we also get an idea of Atos’ management vision around their own digital transformation. 

When Atos acquired Bull, Atos executives explained to us their vision: they were no longer a standard IT service company, but a digital solution specialist. They told us that, to achieve that vision, they were doing their own digital transformation, as it is difficult to do for clients something that you are not doing for yourself. They would anchor that strategy around high-end intellectual property (IP) in specific and critical market segments. Cyber security, high-performance computing (HPC), cloud computing, the Internet of Things (IoT) and big data were the critical building blocks to achieve that vision, but also for any of their clients to succeed in their digital transformation. 

This is precisely where Gemalto fits in. To succed in their digital transformation and become a digital service provider, Atos need to fully master the value chain of some of the most critical digital solutions they provide. To achieve this, they realized they had to master some specific hardware, such as the ones of Gemalto. This bold move is not fully understood by some investors and market analysts, but it carries a lot of value. For exemple, the IP derived from Bull already permits them to be the only European company able to compete in HPC, but also to be the top performer when it comes to SAP HANA appliances. Thereby, merging their big data & AI cyber security capacities with Gemalto’s full end-point protection and ID Management systems is a great value proposition in the security field, and a key enabler for digital and IoT solutions. This type of differentiator enables Atos to offer performant and secure digital solutions to its clients, with unique value propositions. 

Atos claims to be a global leader in digital transformation, and aims to become an end to end digital services provider. There is still some way to go, but with its current offer to Gemalto, Atos is arranging the necessary IP investment to make it a reality, internally and with its clients. 

Who says the cobbler’s children go barefoot?