HP plumps for Cloud in £7bn deal
Hewlett Packard has shunned hardware in favour of the cloud after it acquired UK-based software company, Autonomy, in a deal that sees HP acquire all outstanding shares for £25.50 each, cash.
The Cambridge-based company, which launched in 1996, has become a global leader in infrastructure software with a customer base of more than 25,000 global companies, law firms and public sector agencies. And while some commentators have suggested that HP have overpaid, Hewlett-Packard’s Chief Executive Officer, Leo Apotheker, was quick to back-up the decision.
Commenting in a press statement, he said: “We’re buying a very strong business. We believe we can extract a lot more from Autonomy by combining it with Hewlett-Packard. That’s the rationale for the price.”
Autonomy’s co-founders, Mike Lynch and Richard Gaunt, added: “This is a momentous day in Autonomy’s history. From our foundation in 1996, we have been driven by one shared vision: to fundamentally change the IT industry by revolutionising 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.”
The new acquisition is the latest in a series of moves away from the hardware market, for which HP is best known, towards software and infrastructure delivery and with Autonomy now in the portfolio, it appears HP is most certainly heading into the cloud.
HP is not the only hard-ware based computer firm to make the switch, following the $12.7bn Google and Motorola Mobility deal of last week.
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