HP set to acquire outstanding shares of Autonomy

HP and Autonomy Corporation have announced the terms of a recommended transaction under which HP will acquire all of the outstanding shares of Autonomy for £25.50 ($42.11) per share in cash.

The transaction, reported to be worth £7bn, was unanimously approved by the boards of directors of HP and Autonomy. The Autonomy board of directors has also unanimously recommended its shareholders accept the offer.

Based on the closing stock price of Autonomy on 17 August 2011, the consideration is said to represent a one-day premium to Autonomy shareholders of approximately 64 per cent and a premium of approximately 58 per cent to Autonomy’s prior one-month average closing price.

The transaction will be implemented by way of a takeover offer extended to all shareholders of Autonomy.

Founded in 1996, Autonomy offers infrastructure software to the enterprise community with a customer base of more than 25,000 global companies, law firms and public sector agencies, and approximately 2,700 employees worldwide.

The acquisition of Autonomy is expected to be completed by the end of calendar 2011.