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HP Now Controls 87 Percent of Autonomy

By - Source: Tom's Guide US | B 11 comments

HP announced that it has purchased 213,421,299 Autonomy shares for 25.50 British Pounds each in cash.

In exchange for about $8.4 billion, HP now controls 87.34 percent of Autonomy's share capital. The company said that it still offers to buy all remaining shares.

According to HP, Autonomy has about 25,000 services customers and will help HP to become a "leader" in enterprise information management, an area which the company has struggled to compete with IBM in the past.

“We are committed to helping our customers solve their toughest IT challenges. The exploding growth of unstructured and structured data and unlocking its value is the single largest opportunity for consumers, businesses and governments,” said Meg Whitman, HP president and chief executive officer, in a prepared statement. “Autonomy significantly increases our capabilities to manage and extract meaning from that data to drive insight, foresight and better decision making.”

The acquisition of Autonomy was originally announced as a near-$12 billion deal by Leo Apotheker, who was recently fired and replaced with former eBay CEO Meg Whitman. The addition of Autonomy has been a highly controversial move, especially since HP previously announced that it would kill its WebOS hardware business and may be considering to spin off its PC unit as well. Also, Oracle recently chimed in and said that Autonomy was offered to Oracle as well.

However, Oracle said that it declined to buy Autonomy and told Autonomy CEO Mike Lynch back in April that the company was already "extremely overpriced" at a market cap of $6 billion.

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  • 0 Hide
    NightLight , October 4, 2011 9:06 PM
    On an enterprise level, it's hard to beat HP.
  • 1 Hide
    randomstar , October 4, 2011 9:07 PM
    things are worth what someone will pay for it.. not what the numbers say its worth..
    look at gold. current market is way over actual usable value.
  • 9 Hide
    a sandwhich , October 4, 2011 9:30 PM
    Recently saw thousands of hp servers in use by a company that requires 100% uptime. Pretty crazy.
  • Display all 11 comments.
  • 1 Hide
    bustapr , October 4, 2011 9:36 PM
    Quote:
    Autonomy significantly increases our capabilities to manage and extract meaning from that data to drive insight, foresight and better decision making.”


    their doing something right this time
  • 1 Hide
    eddieroolz , October 5, 2011 12:23 AM
    I have no qualms about this, but HP better be careful with its spending.
  • 1 Hide
    bustapr , October 5, 2011 12:32 AM
    NightLightOn an enterprise level, it's hard to beat HP.

    this is true. I especially like Ps oscilloscops and spectrum analizers, dont get any better than those.
  • 0 Hide
    nrgx , October 5, 2011 1:16 AM
    bustaprthis is true. I especially like Ps oscilloscops and spectrum analizers, dont get any better than those.

    I thought HP spun off the test equipment business to Agilent. Or are you talking about pre 2000/2001 oscopes and such?
  • 0 Hide
    bugo30 , October 5, 2011 1:59 AM
    not so autonomous now are they?
  • 1 Hide
    bustapr , October 5, 2011 2:33 AM
    Quote:
    I thought HP spun off the test equipment business to Agilent. Or are you talking about pre 2000/2001 oscopes and such?

    thise old ones are 1000 times better than the new agilent ones, theyre a real pain to work with, the hp ones were real easy.
  • 0 Hide
    Anonymous , October 5, 2011 5:11 AM
    HP has lost the plot.. ..
    Another fine example.. great going guys..
    i wll now goto the circus to visit the HP store.
  • 0 Hide
    Anonymous , October 5, 2011 9:21 AM
    An acquired customer is worth $336,000 to shareholders of Hewlett Packard.
    The value of shareholder investment is like a church of technology.
    Follow the smell of burning cash to discover who is wandering around.