Siemens sells IT unit to Atos for 850 m

“We are creating a European Champion,” Siemens CEO Peter Loescher said. The deal is expected to have a “considerable negative earnings impact” in Siemens’ fiscal 2011, it said.
Following this deal, Atos Origin will become a major league player in cloud computing, which Siemens said will be a major growth driver in future. The combined group will have pro forma revenues of around €8.7 billion, making it the largest in Europe and the seventh worldwide.

Siemens will receive around 12.5 million of newly issued Atos Origin shares worth €414 million. The stake is equivalent to a 15 per cent stake in combined group, with a 5-year lock-up commitment. Siemens will also receive a 5-year convertible bond of €250 million and a cash payment of around €186 million.

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