HP will acquire Autonomy

Hewlett-Packard Co (Palo Alto, CA, USA) are working on acquiring Autonomy Corp. Plc (Cambridge, UK).

HP has confirmed the discussions with Autonomy for possible buy, reportedly for about $10.0 billion which is a premium of 60.0 percent. The acquisition is to be paid in cash.

Autonomy, the UK’s second-largest software company, was founded in 1996 by CEO Mike Lynch, who owns an 8.0 percent stake in it. The company offers programs used in database search, and its clientele includes Coca-Cola Co., Nestle SA and the U.S. Securities and Exchange Commission. In its second quarter, Autonomy reported sales of $256.0 million.

After he took charge at HP, Chief Executive Leo Apotheker had indicated plans to expand software and services business, especially in cloud computing – whereby shared resources and software are provided to computers over the Internet.

Source: Reuters