HP gains control of Autonomy

HP gains control of Autonomy

Summary: HP has officially won control of Autonomy. The deal has been criticized by analysts for being too pricey.

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HP said that it has gained control of Autonomy via a cash tender offer.

The company said that it has acquired more than 87 percent of Autonomy for £25.50 per share in cash.

With the deal, which has been derided for being too expensive by analysts, HP gains 25,000 customer accounts and can pursue its plan to beef up its software unit.

Autonomy is seen as a specialist in managing unstructured data. HP CEO Meg Whitman said Autonomy allows the company "to manage and extract meaning from that data to drive insight, foresight and better decision making.”

Mike Lynch, current CEO of Autonomy, will continue to run the business and report to Whitman. Lynch has been on the receiving end of barbs from Oracle CEO Larry Ellison. Ellison said that Autonomy was shopped to Oracle. Lynch disagreed.

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Topics: CXO, Hewlett-Packard, IT Employment

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3 comments
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  • RE: HP gains control of Autonomy

    They may have overpaid compared to what Autonomy was worth to Oracle; but value is not absolute, it's relative.

    HP needed a trophy, and - much more than Oracle - they needed the kind of service that Autonomy does.

    Only time will tell if they can make it work, but with wreckage all around them, the HP board needed something positive - and they needed it now!

    Ellison is noted for hot air, so I suspect he's actually a bit peeved. He's hardly an objective viewer.
    Heenan73
  • Timewarner gains control of AOL

    Look, if this was the direction HP want to travel then management would have formed strategies, done their homework, priced different options (should we form a HP unit for it, buy somebody else, transform one of our existing units), hired experts in the field to pick their brains, priced all the companies in this area etc etc.<br><br>But that's not what happened apparently, the head of Autonomy came along said "buy me at this ridiculous price" and *THAT* became their strategy.<br><br>It was not a 'strategy communication problem' (as was claimd at Apotheke sacking), it was a 'people playing at being leaders by doing stuff they think leaders do' sort of a problem.
    guihombre
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