HP grabs Autonomy for $10B

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HP will acquire enterprise architecture software developer Autonomy, acquiring all of the outstanding shares of Autonomy for $42.11 per share in cash, which equates to about $10 billion.

The transaction was unanimously approved by the boards of directors at both the Palo Alto, Calif.-based HP and Cambridge, England-based Autonomy. The Autonomy board of directors also has unanimously recommended its shareholders accept the offer.

Based on the closing stock price of Autonomy on Aug. 17, this 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 takeover offer extended to all shareholders of Autonomy. The acquisition of Autonomy is expected to be completed by the end of 2011, the companies announced.

Following the acquisition, Autonomy will operate separately.