The three acquisitions are expected to strengthen the French firm’s cybersecurity offerings, digital manufacturing capabilities and its position in Edge and Computer Vision
French IT company Atos has reported a 1.9% drop in its revenue to €2.69bn ($3.23bn) in the first quarter of 2021, compared to € 2.74bn ($3.29bn) recorded in the same quarter a year earlier.
The revenue decline was due to the impact of the Covid-19 pandemic, despite resilience in the sectors such as financial services and insurance, and in healthcare and life sciences.
The firm witnessed a 6.7% decline in revenue from the manufacturing sector to €488m in the quarter, due to a reduction of volumes in Germany.
Atos recorded a 7.4% growth in revenue from the financial services and insurance sector to €544m in the January-March quarter. Business transformation projects in Northern Europe and new digital banking projects in Growing Markets have contributed to an increase in revenue from the sector.
The company has also posted a 3.2% drop in its revenue from the public sector and defence industry to €579m, largely due to delays in Big Data projects and a volume reduction in North America.
The public sector and defence sector accounted for 22% of Atos’ revenue in the quarter.
Atos has also faced a 6.2% revenue drop from the resources and services sector, as customers operating in transportation and hospitality were impacted by a demand decline from Covid-19.
The company’s revenue from the North American and Central European regions declined by 9.4% and 8.5% to €564m and €609m, respectively.
However, the Paris-based firm saw a 6.2% increase in revenue from the Northern European region, due to strong business growth in telecom, media and technology as well as in financial services and Insurance, and healthcare and life sciences.
At the end of March 2021, the company’s total headcount stood at 104,485, compared to 104,430 at the end of December 2020.
Separately, Atos announced making three acquisitions that include Canada-based Processia, UK-based Ipsotek and German cybersecurity firm cryptovision.
Ipsotek is an AI-enhanced video analytics software provider, while Processia is a product lifecycle management (PLM) system integrator and Dassault Systèmes Global Service Partner.
By acquiring Ipsotek, Atos is anticipated to strengthen its position in Edge and Computer Vision, with the addition of key software capabilities and IP to its solutions portfolio.
Founded in 1999, cryptovision is engaged in developing and implementing cryptography software, security solutions and hardware products.
The acquisition of cryptovision is expected to strengthen Atos’ cybersecurity product lines, in addition to boosting the company’s business in the public sector and defence market in Europe.