HP expects to complete Autonomy acquisition by year-end, CEO says

- Friday, August 19, 2011

HP expects to complete Autonomy acquisition by year-end, CEO says

HP (NYSE: HPQ) expects to complete the acquisition of UK software maker Autonomy for about US$10bn by the end of this year, company CEO Leo Apotheker told a conference call with investors.

According to press reports, the value of the acquisition will reach some US$10bn.

"Autonomy represents an opportunity for HP, for us to accelerate our vision to decisively and profitably lead a large and growing space, which is the enterprise information management space," Apotheker said. "This is a milestone moment because there is a very real and concrete need for our customers to address the explosion of unstructured and structured information."

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Apotheker also said the acquisition will complement HP's existing technology portfolio and enterprise strategy.

PC BUSINESS SPIN-OFF PLAN

The executive also confirmed HP's plans to consider spinning off the firm's PC business. "Consumers are changing the use of the PC. The tablet effect is real, and sales of the TouchPad are not meeting our expectations," he said. "We see the opportunity for PSG to compete and win in the PC marketplace, and our board has authorized us to explore strategic alternatives for PSG," or the Personal Systems Group.

"We intend to evaluate a range of options that may include, among others, a separation of PSG from HP through a spinoff or other transaction," Apotheker said. "The contemplated direction is an important component of our strategy to sharpen HP's focus on cloud, solutions and software, accessible to any type of device, while we continue to expand and leverage our strong technologies, including printing hardware, software and services."

The completion of this process will take 12-18 months, he added.