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By | John Oates 19th August 2011 08:42

Hits keep on coming: HP buys Autonomy for $11bn cash

Brit techbiz poster-boy Autonomous no more

HP has confirmed it is buying Cambridge-based enterprise software company Autonomy for $10.24bn (£6.2bn).

The acquisition was half-confirmed during last night's conference call, when the ink giant said the two companies were "in talks".

But a statement from Autonomy this morning said the two company boards had agreed a cash offer of £25.50 per share – a 64 per cent premium on yesterday's close and between 50 and 58 per cent on average closing price over the last one and three months respectively.

The offer values the UK firm at £7,091m.

Autonomy directors have already signed away their holdings – 9.12 per cent – or £646m.

Mike Lynch, Autonomy's founder and CEO, said: "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..."

HP said the takeover would strengthen its enterprise software business and its cloud-based products.

Mike Lynch will continue to run the company. ®

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