Atos digital leadership strengthened by the completion of the acquisition of the US-based Syntel

Paris, October 9, 2018

Atos, a global leader in digital transformation, today announced that it has completed the acquisition of Syntel Inc., a leading global provider of integrated information technology and knowledge process services headquartered in Michigan, with $ 924 million revenue in 2017 of which 89% is in North America, 25% operating margin, and c. 40% of its activities in digital, automation, and robotization. Syntel offers its customers high value-added digital services in several specific verticals such as Banking and Financial Services, Healthcare, Retail and Insurance.

Commenting on the finalization of the deal, Thierry Breton, Atos Chairman and CEO said: “Today marks a new major step in the development of the Group, as we welcome more than 23,000 Syntel employees to Atos. With this transaction, we take a new dimension to accelerate the digital transformation of our customers worldwide, while strongly reinforcing our Business & Platform Solutions activities with new clients in North America and a delivery platform from India with a consistent and competitive size to support our customers in their digitalization journeys. We worked extensively to be ready from day one post-closing and to ensure continued delivery of services to our clients while at the same time leveraging the combined strengths of the two Groups for profitable growth. In that regards, Syntel will operate as a dedicated unit named Atos Syntel within our Business & Platform Solutions Division”.

Pursuant to the terms of the Merger Agreement, announced on July 22, 2018 and approved by Syntel’s shareholders on October 1, 2018, Syntel today becomes a wholly owned subsidiary of Atos. The purchase price of $ 3.4 billion and the repayment of Syntel’s outstanding debt for $ 0.3 billion were financed through debt fully underwritten by BNP Paribas and J.P. Morgan Securities PLC, whose syndication closed largely oversubscribed with a group of 25 banks. As a result of the acquisition, Syntel shares will cease trading, and will be delisted from the NASDAQ.

The Group expects to generate compelling and significant synergies both at revenue and cost levels.

Strong portfolio and complementary customer bases between the two companies will generate multiple cross-selling opportunities, leading to expected revenue synergies of c. $ 250 million by the end of 2021, with c. 20% operating margin, half of them planned by the end of 2020. Atos will also benefit in particular from tangible operational improvement by taking advantage of Syntel’s current offshore, automation, and robotization capabilities. Cost synergies are planned to be generated in particular by applying Syntel’s best practices on the existing Atos Business & Platform Solutions operating model. The total cost benefits are estimated at $ 120 million per year on a run rate basis by the end of 2021 with a linear phasing.

The transaction is expected to be EPS accretive immediately with double digit accretion as early as 2019 excluding the impact of PPA and transaction and implementation costs.

Syntel will be consolidated into the Group financial statements as of November 1, 2018.

***

Contacts

Investor Relations:

Gilles Arditti – Tel +33 1 73 26 00 66 – gilles.arditti@atos.net

Media:

Terence Zakka – Tel +33 1 73 26 40 76 – terence.zakka@atos.net

About Atos

Atos is a global leader in digital transformation with 120,000 employees in 73 countries and annual revenue of € 13 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions through its Digital Transformation Factory, as well as transactional services through Worldline, the European leader in the payment industry. With its cutting-edge technologies and industry knowledge, Atos supports the digital transformation of its clients across all business sectors. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos Syntel, Unify and Worldline. Atos is listed on the CAC40 Paris stock index.

For more information, visit: atos.net.

Disclaimers

This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group’s expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors behaviors. Any forward-looking statements made in this document are statements about Atos’ beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Atos’ plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2017 Registration Document filed with the Autorité des Marchés Financiers (AMF) on February 26, 2018 under the registration number D.18-0074 and the update to the 2017 Registration Document filed with the AMF on July 27, 2018 under number D.18-0074-A01. Atos does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law. This document does not contain or constitute an offer of Atos’ shares for sale or an invitation or inducement to invest in Atos’ shares in France, the United States of America or any other jurisdiction.