HP To Buy Enterprise Software Autonomy For $10.2 Billion In Cash

According to a Bloomberg report, HP is set to buy European infrastructure software company Autonomy for as much as $10 billion. That price would make the acquisition one of HP’s largest deals to date.

Autonomy’s enterprise software powers pan-enterprise search, customer interaction solutions, information governance, end-to-end eDiscovery, records management, archiving, business process management, web content management, web optimization, rich media management and video and audio analysis. The company’s software allows enterprises to provide insight and structure to electronic data, including unstructured information, such as text, email, web pages, voice, or video.

Autonomy, which trades on the London Stock Exchange, just bought assets from Iron Mountainfor $380 million.

Microsoft and Oracle were also reportedly bidding on Autonomy last year. The company was alsorumored to be evaluating a U.S. listing.

HP has made a number of enterprise acquisitions over the past year, spending $2.35 billion on 3PAR last year, and buying ArcSight for $1.5 billion.

Bloomberg also reported that HP will announce the spinoff of its personal-computer business.

UPDATE: HP just confirmed that it is in “discussions with Autonomy regarding a possible offer for the company.”

HP also reported that it exploring ‘strategic alternatives’ for its Personal Systems Group, including a ‘full or partial separation of PSG from HP through a spin-off or other transaction.’

UPDATE 2: HP has confirmed that it will acquired Autonomy for £25.50 ($42.11) per share in cash.

Léo Apotheker, HP president and chief executive officer of HP said in a statement:

“Autonomy presents an opportunity to accelerate our strategic vision to decisively and profitably lead a large and growing space…Together with Autonomy, we plan to reinvent how both unstructured and structured data is processed, analyzed, optimized, automated and protected. Autonomy has an attractive business model, including a strong cloud based solution set, which is aligned with HP’s efforts to improve our portfolio mix. We believe this bold action will squarely position HP in software and information to create the next-generation Information Platform, and thereby, create significant value for our shareholders…Autonomy is a highly profitable and globally respected software company, with a well-regarded management team and talented, dedicated employees. We look forward to partnering with a company who shares our commitment to solving customer problems by creating smart, cutting-edge products and solutions.”