GReAT™ (Global Rebrand and Architecture Tracker): Atos

Atos

Atos is a global leader in digital transformation. 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. It is also the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos|Syntel, and Unify.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence.
Atos has pursued a single brand strategy on many of its large acquisitions – Syntel, Xerox’s ITO business and Bull. As with many IT services companies, a fully integrated company across markets and service divisions has been seen as important for the performance and growth of the company.

Atos’s first large acquisition was Bull in 2014.Bull was a fellow French-headquarted company specialising in cloud, high performance computing, big data, mission critical systems and cybersecurity enabling Atos to extend its brand into products. The merger brought together two big European players to make a regional leader in the category. The avoidance of competition and confusion led to the rationalisation of the two brands, bringing together two of the big European players to make a regional leader in the space.

The rebranding of Xerox’s ITO business – Atos’ second large acquisition – again improved Atos’ digital services capabilities, strengthened its global reach and its ability to cross sell and service its many large clients. Single-brand strategy notwithstanding, the rebrand of this acquisition was fundamentally necessary as a result of the continued existence of the Xerox brand.

Michigan-based Syntel is Atos’ most recent large acquisition. The acquisition opened a new customer base, additional strength on specific business verticals and a stronger base in North America and India. Syntel was also rebranded as part of Atos’ single global brand strategy but in this final case, the division became Atos|Syntel given the mutual strengths of the two brands.

Generally, all these decisions have been warmly received and the company has strengthened as a result of the moves. However, financial results following the execution of the Syntel rebrand were slightly lower than expected and the company share price suffered. Sometimes there are bumps along the road but a consistent strategy, backed by strong additions to service capability has meant Atos is firmly one of the strongest and most valuable IT services brands in the world.

Interview with Martin Pietersen

Atos has consistently rebranded its large acquisitions to create a single global brand. How did you decide on the overarching strategy and what in your view are the benefits?

It was only in 2018, that we decided the Atos brand should be at the center of everything we do - enabling us to build one powerful brand against the global competitors and unify the employees around one employer brand. Until then, we were following a house of brands architecture.

From our experience of having operated a house of brands, we understood that keeping brands did not work well in integrating the people within Atos as a group. Externally also, stakeholders did not clearly understand the relationship between the corporate Atos brand and the various commercial brands we acquired. This confusion, both internally and externally, was negatively impacting our business.

Bull was another French company, and therefore presumably had a closer cultural fit, while Xerox and Syntel are American. How different is integrating companies with different histories and cultures?

In our experience there is always a clear difference in culture, and from the three acquisitions that Brand Finance profiles, the transition process was easier for Xerox and Syntel as their portfolios fitted more naturally into Atos. Bull, on the other hand, was more complex to handle because of its large portfolio of product brands. It brought in expertise which was different to how Atos operates. We started with a gap here. This meant that we had to spend more time understanding their operations and bridging the gap between Atos and Bull.

An important rule that we follow in terms of culture and people is – listen carefully! It is crucial to listen when you are the company that is acquiring. Listen to understand the DNA of the company, what their values are, where do they fit and where are the gaps. The integration process is going to take time and it is the quality and strength of the people that make the acquisition a success.

Given Atos and your experience rebranding large acquisitions, what are the key tips and watch-outs for other companies embarking on their own series of rebrands?

Start with stage one, the pre-acquisition. Here, you really need to understand in detail, where the acquired company is going to fit within your growth, brand, go-to-market and portfolio strategy. If you don’t do that at the very early stage, you will have issues in later stages. When the deal is signed, we get into the transition stage. At this stage a brand transition plan should be made with a recommended day 1 to ensure all functions are aligned to deliver on the same day. This is the day when the brand of the acquired company will change into the new brand. All stakeholders should be involved and engaged.

A plan does not only refer to a change in the colour and design of the logo. It goes way beyond, including areas that people often forget about like the technical implications on tax, trademarks and goodwill. We also need to be clear when the job is done. Businesses often forget to look end-to-end. For example, how do you use the Atos brand on an invoice if the name-change of the legal entity has not yet been processed?

Finally, keep in mind different scenarios apply when you implement a rebrand. Be dynamic and flexible. The best brand transitions that I have done so far, always started with listening and figuring out what options I have, to succeed in my business and brand transition.