Shares in France’s Atos Slump After Auditors Found U.S. Accounting Errors

PARIS—France’s Atos SE said its auditors have found accounting errors at two U.S. subsidiaries and were unable to verify its complete accounts ahead of the information-technology firm’s annual shareholder meeting.

The two U.S. units, Atos IT Solutions and Services Inc. and Atos IT Outsourcing Services LLC, represent 11% of the company’s revenue and 9% of its operating margin, Atos said Thursday.

The French IT services company’s shares fell by as much as 14% in Thursday morning trading. Atos said it hasn’t identified any material misstatements in its annual accounts.

Atos has pursued a string of U.S. acquisitions in recent years, including the $3.4 billion deal in 2018 to buy rival Syntel, based in Troy, Mich. Atos, which reported €11.2 billion, equivalent to $13.14 billion, in revenue last year and a net profit of €725 million, said it has made nine small acquisitions over the past year in areas including cybersecurity and cloud analytics.

An excerpt of an audit report disclosed by Atos Thursday said the company’s auditors found “several matters relating to internal control weaknesses over financial reporting process and revenue recognition” that led to several accounting errors. The errors relate to an accounting rule that determines how a company reports revenue from its customers, according to the excerpt.

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