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.

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