PARIS -Ailing French IT firm Atos said it needed 1.1 billion euros ($1.18 billion) in cash to fund its businesses over the 2024-25 period, and confirmed the French state had made an offer to buy out some of its key units.

Atos' latest estimate of the need for 1.1 billion euros in cash was almost double the 600 million euro estimate given in April, as its group finances deteriorated further.

The company also confirmed it received a non-binding letter of intent from the French state to acquire the company's business deemed strategic, with an indicative enterprise valuation between 700 million and 1 billion euros.

The due diligence phase on the offer will start shortly with the aim of being followed by a confirmatory non-binding offer in June, Atos said.

France's Finance Ministry said on Sunday the state was targeting three of Atos's activities - Advanced Computing, Critical Systems and Cyber Products - deemed to have strategic importance.

The heavily indebted company on Monday said it was now targeting a 'BB' credit profile by 2026, which would imply a gross debt reduction of 3.2 billion euros, compared with a target of 2.4 billion euros previously.

Atos, which manages data and cybersecurity for the upcoming Olympic Games, is in the midst of a refinancing, which includes raising 1.2 billion euros via equity and new loans and will result in significant dilution for existing shareholders.

  - Reuters