HP to Acquire Software Firm Autonomy Corp. for $11.7B Cash; CEO Leo Apotheker Comments

Hewlett-Packard Co. (NYSE: HPQ) has placed a recommended cash offer to purchase prominent U.K. software firm Autonomy Corp. for $42.23 per share, or over $11.7 billion.

HP’s new HP Vision subsidiary will acquire the enterprise information software management firm. Autonomy founder and CEO Mike Lynch will continue to lead its operations.

The boards of both companies announced the terms, which represent a more than 60 percent premium. HP expects the move to increase its earnings per share in the year following its close.

Autonomy provides infrastructure software, platforms that support analytical applications and cloud computing services that have over 30 petabytes of customer information under management.

Autonomy employs approximately 2, 700 workers and is the U.K.’s second-largest software company.

Autonomy will generate $1.05 billion in 2011 sales, an average of Bloomberg analysts’ predictions found.

“Together with Autonomy, we plan to reinvent how both structured and unstructured data is processed, analysed, optimised, automated and protected, ” said Leo Apotheker, HP president and CEO. “Autonomy has an attractive business model, including a strong cloud based solution set, which is aligned with HP’s efforts to improve our portfolio mix.We believe this bold action will squarely position HP in software and information to create the next-generation information platform and thereby create significant value for our shareholders.”

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