Atos splurges on three acquisitions – buying Processia, Cryptovision, and Ipsotek

This week Atos announced the acquisition of three companies, with plans to reinforce its Edge and Computer Vision business through software provider Ipsotek; bolster cybersecurity credentials through German cryptography specialist cryptovision, and shore up digital manufacturing capabilities through the acquisition of Processia.

Atos hasn't been shy over the past 18 months, announcing a raft of bolt-on acquisitions that help accentuate existing offerings or plug gaps in the dynamic IT Services market. The latest binge from the firm follows several other investments in 2021, including cybersecurity services firm Motiv and Salesforce consultancy Profit4SF.

Looking at the Ipsotek acquisition first, Atos looks to benefit from the firm's strong solution portfolio, which includes VISuite, an AI platform that enables employees to manage alerts in real-time. A useful toolset in scenarios such as intrusion detection, number plate recognition, and traffic management. Atos plans to combine its capabilities with Ipsotek to target computer vision use cases in the public sector, retail, manufacturing, transportation, and critical infrastructure sectors. Ipsotek also offers more pressing solutions for businesses looking to deal with the unique environment presented by the COVID-19 pandemic, enabling computer vision capabilities to tackle areas such as social distancing and face mask detection. The firm's successful client projects include facial recognition in airports and perimeter protection solutions around nuclear powerplants.

Cryptovision, on the other hand, is set to bolster Atos' rapidly growing cybersecurity business with unique solutions made in Germany, certified by the Federal Office for Information Security and accredited by NATO. According to a press release from Atos, the firm is particularly keen to build synergies across their go-to-market approach, emphasizing benefits from cryptovision's strong network of resellers and partners in the e-ID market. Cryptovision counts several leading firms and institutions among its clients, including Volkswagen, Siemens, and the Bundeswehr. The firm joins several other significant investments from Atos in the cybersecurity space and will help the firm develop solutions in what is set to be one of the fastest-growing sectors of the IT Services market in Europe, which in Germany alone is set to hit close to 3bn Euros in 2021.

Finally, by snapping up Processia, a Product Lifecycle Management system integrator based out of Canada, Atos aims to strengthen its digital manufacturing capabilities. A market set to drive significant digitalization efforts over the next few years. Processia offers consulting, integration, and managed services for businesses in the aerospace, automotive, transportation, life sciences, discrete manufacturing and high-tech sectors and will bring in approximately 250 highly skilled team professionals.

Atos is once again proving it has a solid grasp of how major market trends will shift enterprise demand – and is moving swiftly to reinforce high-potential services through its latest slew of acquisitions. Digging into our analysis of Atos' acquisition strategy, we can start to see clear patterns emerge as the firm looks to lock down talent and capability in specific markets or open up opportunities with new client groups.

In the case of Cryptovision, the acquisition aligns well with Atos' strategy to bolster security capabilities – the acquisition follows a flurry of activity from the firm over the last six months. Earlier this year, the firm purchased In Fidem to reinforce its cybersecurity position in the North American market. In 2020, Atos hoovered up Motiv, the largest independent security services firm in the Netherlands. In the same month, Atos also picked up cybersecurity firms,, SEC Consult Group, and Paladion.

And while Ipsotek and Processia aren't neatly nestled amongst a slew of other acquired companies, they demonstrate Atos' commitment to build out new technological capabilities that align with its growth strategy, in this instance supporting Atos' increasingly verticalized go-to-market.

As we move further into 2021, we can expect more heated M&A activity as IT providers invest to out-accelerate rivals in a dynamic and fast-moving market. And while Atos has proven to be one of the more acquisitive firms over the past 12 months, with a clear vision for highlighting targets that align well with its core growth strategy, it will need to continue on this path as competitors turn up the heat in core digital battlegrounds.

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