Oil Report

UPDATE 1-Atos plans more acquisitions, sees revenue growth from green IT

(Adds details of results)

June 24 (Reuters) - French IT consulting group Atos said on Wednesday it would target more acquisitions and expected to grow its revenue in the mid-term by between 5% and 7%.

The software group also forecast a mid-term operating margin rate of between 11% and 12% of revenues, and confirmed all its 2020 targets, which it had cut in late April due to the coronavirus pandemic.

Free of net debt, Atos said it would target bolt-on acquisitions and cybersecurity companies, as it announced two new acquisitions: Paladion, a global cybersecurity firm, and Alia, a digital consulting company which specialises in the energy sector.

Atos expects to close both deals by the end of the year.

It bought artificial intelligence and data science firm Miner & Kasch in April and U.S.-based cloud consulting group Maven Wave earlier this year, as well as cybersecurity firm IDnomic and energy specialist X-Perion in 2019.

After it cancelled its 2020 dividend payout in April, the group said it would maintain its dividend policy and use remaining free cash flow to finance further acquisitions.

“Digital, Cloud, Security, and Decarbonization are expected to represent 65% of group revenue in the mid-term compared to 40% today, reflecting a major change in the Group offering,” said chief executive Elie Girard.

Last year, the manufacturing, retail and transportation sectors brought in the biggest earnings.

The Paris-based firm, which aims to achieve net-zero carbon emissions by 2035, said it expected in the mid-term to generate over 500 million euros ($566.05 million) in sales from its decarbonisation services, which use technology to assess and reduce carbon emissions in businesses.

Atos also anticipated more than 2 billion euros in mid-term revenue from its digital security business. ($1 = 0.8833 euros) (Reporting by Sarah Morland in Gdansk; Editing by Shri Navaratnam and Muralikumar Anantharaman)