HP Enterprise Sells Troublesome Autonomy Software Unit
PCR reports that after six years after its acquisition of U.K.-based software firm Autonomy, HP Enterprise has finally shed the company, selling it for some $8.8 billion to U.K. tech giant Micro Focus.
HP – before it split into HP Enterprise (enterprise software and hardware) and HP Inc. (PCs and printing) purchased Autonomy for $11 billion back in 2011. However, a year later, it wrote down almost $9 billion from the value of the purchase, and filed a $5.1 billion fraud case against Autonomy founder Mike Lynch and CFO Sushovan Hussain, who both responded with counter lawsuits, with tough talk on both sides. The case expected to go to court next year. Over $5 billion of HP’s fraud case alleged “accounting irregularities” at Autonomy before HP purchased it. HP investors also began taking legal action over how the acquisition was handled, and HP accused Autonomy CFO Hussain of being “one of the chief architects of the massive fraud on HP”
Later, in March 2013, both the U.K.’s Serious Fraud Office and Financial Reporting Council (FRC) began looking into Autonomy’s published financial reports.
The combined Autonomy and Micro Focus now makes up the seventh largest software company in the world, with annual sales of $4.4 billion.
- November 2016: Former Autonomy CFO Indicted on Conspiracy, Wire Fraud Charges in Disputed HP Deal
- October 2015: Former Autonomy Founder Mike Lynch Sues HP For $160 Million in Damages
- June 2015: HP to Pay $100 Million to Settle Autonomy Shareholder Lawsuit
- August 2014: HP Accuses Autonomy Founder Michael Lynch of Fraud, Files Lawsuit
- January 2014: U.K. Fraud Office Ends HP Autonomy Investigation, but Investigation Continues in U.S.
- May 2013: Hewlett-Packard Faces $1 Billion Lawsuit from Shareholders over Autonomy Deal
- November 2012: HP Charges Autonomy Management Willfully Misled Potential Buyers, Falsely Inflated Value of Autonomy
- November 2012: HP-Autonomy War of Words Continues with New HP Statement
- October 2011: HP Completes Acquisition of Autonomy, Will Boost Enterprise Software, Cloud Offerings