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Primeur weekly 2011-08-22

Exascale supercomputing

Japan plans to invest $1.3 billion to develop supercomputer ...

NVIDIA taps industry veteran Steve Scott to help shape the future of high performance computing ...

The Cloud

Regulus Communications launches Cloud resources for health information technology ...

ISGC 2012 to issue Call for Papers ...

Erlang Solutions and Massive Solutions partner to bring supercomputing to the mass market ...

Biomedical research gets its head into Cloud computing ...

HP to acquire enterprise information management software company Autonomy Corporation plc ...

Convenience store chain chooses IBM to collaborate in the Cloud ...

VMware vCloud Powered programme gains traction with service provider ecosystem, delivering customers a broad array of public Clouds compatible with VMware platform ...

VMware CEO Paul Maritz highlights benefits of Cloud computing at DISA Customer & Industry Forum ...

U.S. Government agencies embrace desktop virtualization with VMware View to accelerate their mission ...

EuroFlash

Norwegian University of Science and Technology selects SGI to take weather forecasting and national research capabilities to the next level ...

T-Platforms computer cluster is applied for simulation of biopolymers and development of the latest medicines ...

ClusterVision honours leading scientific researchers at the University of Birmingham ...

USFlash

NSF funds research to simulate geoscience field trips ...

HP confirms discussions with Autonomy regarding possible business combination ...

IBM unveils cognitive computing chips ...

Optics Express focus issue highlights research to increase Internet bandwidth capacity ...

Strain and spin may enable ultra-low-energy computing ...

SGI acquires OpenCFD Ltd., an expert in open source computational fluid dynamics (CFD) software ...

SGI reports record results for fiscal fourth quarter and full year 2011 ...

HP to acquire enterprise information management software company Autonomy Corporation plc

18 Aug 2011 Cambridge - HP and Autonomy Corporation plc have issued the terms of a recommended transaction under which HP - through an indirect wholly-owned subsidiary, HP SPV - will acquire all of the outstanding shares of Autonomy for GBP 25.50 ($42.11) per share in cash (the "offer"). The transaction was unanimously approved by the boards of directors of both HP and Autonomy. The Autonomy board of directors also has unanimously recommended its shareholders accept the offer.

Based on the closing stock price of Autonomy on August 17, 2011, the consideration represents a one day premium to Autonomy shareholders of approximately 64 percent and a premium of approximately 58 percent to Autonomy's prior one month average closing price. The transaction will be implemented by way of a take-over offer extended to all shareholders of Autonomy. A document containing the full details of the offer will be dispatched as soon as practicable. The acquisition of Autonomy is expected to be completed by the end of calendar 2011.

Founded in 1996, Autonomy is a global expert in infrastructure software for the enterprise with a customer base of more than 25,000 global companies, law firms and public sector agencies, and approximately 2,700 employees worldwide. Autonomy's Intelligent Data Operating Layer (IDOL) platform allows computers to harness the richness of information, forming a conceptual and contextual understanding of any piece of electronic data, including unstructured information, such as text, e-mail, web pages, voice and video. Autonomy's software powers a full spectrum of mission-critical enterprise applications, including pan-enterprise search, customer interaction solutions, information governance, end-to-end eDiscovery, records management, archiving, business process management, web content management, web optimization, rich media management and video and audio analysis.

Autonomy's IDOL is the de-facto standard among more than 400 OEMs, supported by substantial intellectual property (IP), and Autonomy is a significant Cloud player with over 30 petabytes of customer information under management. Autonomy's recent operating and financial performance has been strong, including its most recent results for the quarter ending June 30, 2011. Over the last five years, Autonomy has grown its revenues at a compound annual growth rate of approximately 55 percent and adjusted operating profit at a rate of approximately 83 percent.

"Autonomy presents an opportunity to accelerate our strategic vision to decisively and profitably lead a large and growing space", stated Léo Apotheker, HP president and chief executive officer. "Autonomy brings to HP higher value business solutions that will help customers manage the explosion of information. Together with Autonomy, we plan to reinvent how both unstructured and structured data is processed, analyzed, optimized, automated and protected. 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."

Léo Apotheker continued: "Autonomy is a highly profitable and globally respected software company, with a well-regarded management team and talented, dedicated employees. We look forward to partnering with a company who shares our commitment to solving customer problems by creating smart, cutting-edge products and solutions. I am particularly pleased that Dr. Mike Lynch, who heads a team of brilliant scientists and employees, will continue to lead Autonomy. I look forward to our collaboration as we focus on creating maximum value for the combined company, its customers and employees."

"This is a momentous day in Autonomy's history", stated Dr. Mike Lynch, chief executive officer and founder, Autonomy. "From our foundation in 1996, we have been driven by one shared vision: to fundamentally change the IT industry by revolutionizing the way people interact with information. HP shares this vision and provides Autonomy with the platform to bring our world-leading technology and innovation to a truly global stage, making the shift to a future age of the information economy a reality."

Strategic and financial benefits include:

  • Positions HP as expert in large and growing space: Autonomy has a strong position in the $20 billion enterprise information management space, which is growing at 8 percent annually and is uniquely positioned to continue growth within this space. Furthermore, key Autonomy assets would provide HP with the ability to reinvent the $55 billion business analytics software and services space, which is growing at 8 percent annually.
  • Complements HP's existing technology portfolio and enterprise strategy: Autonomy offers solutions that are synergistic across HP’s enterprise offerings and strengthens capabilities for data analytics, the Cloud, industry capabilities and work flow management. This will bolster HP's Cloud offerings with key assets for information management and data analytics. Autonomy also complements existing HP offerings from enterprise servers, storage, networking, software, services and its Imaging and Printing Group (IPG).
  • Provides differentiated IP for services and extensive vertical capabilities in key industries: Acquiring Autonomy would provide differentiated IP for services, including extensive vertical capabilities in key industries such as government, financial services, legal, pharmaceutical and health care.
  • Provides IPG a base for content management platforms: Autonomy provides HP with a content management platform and accelerates a major component of the IPG enterprise strategy to continue its growth of document and content management and higher value commercial printing opportunities.
  • Enhances HP's financial profile: Autonomy's strong growth and profit margin profile complements HP's efforts to improve its business mix by focusing on enterprise software and solutions. Autonomy has a consistent track record of double-digit revenue growth, with 87 percent gross margins and 43 percent operating margins in calendar year 2010.
  • Accretive to HP's earnings: HP expects the acquisition to be accretive to non-GAAP earnings per share for HP shareholders in the first full year following completion.

Mike Lynch will continue to lead Autonomy and will report to Léo Apotheker. Following the acquisition, Autonomy will operate separately.

The offer will be subject to the conditions and further terms set out in the offer documents. HP intends to finance the transaction through offshore cash and debt financing.
Source: HP

Back to Table of contents

Primeur weekly 2011-08-22

Exascale supercomputing

Japan plans to invest $1.3 billion to develop supercomputer ...

NVIDIA taps industry veteran Steve Scott to help shape the future of high performance computing ...

The Cloud

Regulus Communications launches Cloud resources for health information technology ...

ISGC 2012 to issue Call for Papers ...

Erlang Solutions and Massive Solutions partner to bring supercomputing to the mass market ...

Biomedical research gets its head into Cloud computing ...

HP to acquire enterprise information management software company Autonomy Corporation plc ...

Convenience store chain chooses IBM to collaborate in the Cloud ...

VMware vCloud Powered programme gains traction with service provider ecosystem, delivering customers a broad array of public Clouds compatible with VMware platform ...

VMware CEO Paul Maritz highlights benefits of Cloud computing at DISA Customer & Industry Forum ...

U.S. Government agencies embrace desktop virtualization with VMware View to accelerate their mission ...

EuroFlash

Norwegian University of Science and Technology selects SGI to take weather forecasting and national research capabilities to the next level ...

T-Platforms computer cluster is applied for simulation of biopolymers and development of the latest medicines ...

ClusterVision honours leading scientific researchers at the University of Birmingham ...

USFlash

NSF funds research to simulate geoscience field trips ...

HP confirms discussions with Autonomy regarding possible business combination ...

IBM unveils cognitive computing chips ...

Optics Express focus issue highlights research to increase Internet bandwidth capacity ...

Strain and spin may enable ultra-low-energy computing ...

SGI acquires OpenCFD Ltd., an expert in open source computational fluid dynamics (CFD) software ...

SGI reports record results for fiscal fourth quarter and full year 2011 ...