Now Bloomberg saying $10.3 Bln..but same pps./I think the CEO, Lynch, should hold out so that he gets an even $1 Bln for his 19.8 mln shares..$834 Mln just isn't enough.
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Hewlett-Packard Co. (HPQ) is planning a sweeping overhaul of its businesses, agreeing to buy Autonomy Corp. for $10.3 billion and weighing a breakup that would unravel the much-debated Compaq Computer Corp. purchase.
Autonomy shareholders will receive $42.11 a share, Palo Alto, California-based Hewlett-Packard said in a statement. That represents a 64 percent premium over Autonomy’s closing share price yesterday. Hewlett-Packard also said it’s considering spinning off its PC division and that it will discontinue products that run WebOS software. Hewlett-Packard shares dropped after the company issued forecasts that missed estimates.
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Autonomy, the second-largest U.K. software maker, offers programs used in database search. The company’s customers include Coca-Cola Co. (KO), Nestle SA (NESN) and the U.S. Securities and Exchange Commission.
Autonomy CEO Mike Lynch, who founded the company in 1996, owns about 8 percent of the stock, Bloomberg data shows. At 25.50 pounds a share, Lynch’s 19.8 million shares of Autonomy are worth 504.9 million pounds, or $834 million. Lynch, speaking in a June 21 interview, said U.K. software companies are cheaper than their U.S. counterparts.
Sage Group Plc is the biggest British software company in terms of revenue.
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In the past five years, there have been more than 970 takeovers of European software companies, amounting to over $31 billion in deals, according to data compiled by Bloomberg. The largest, not including the deal announced today, was SAP’s 2008 takeover of Business Objects SA.
Hewlett-Packard is paying 24 times Autonomy’s trailing earnings before interest, taxes, depreciation and amortization, compared with a median of 17 times Ebitda in 10 comparable deals, Bloomberg data show.
Barclays Plc (BARC) and Perella Weinberg Partners LP are advising Hewlett-Packard on the transaction. Qatalyst Partners is the lead financial adviser to Autonomy, which is also getting advice from Citigroup Inc., Goldman Sachs Group Inc., Bank of America Corp., UBS AG and JPMorgan Chase & Co. |
