HP reportedly planning to spin off PC business, in talks to buy Autonomy

Thursday, August 18, 2011

HP (NYSE: HPQ) is in talks to buy UK software maker Autonomy for about US$10bn and plans to spin off its PC business, Bloomberg reported, citing unnamed sources close to the matter.

The IT giant is expected to announce its plans shortly, according to the report.

The move would be in line with the company's strategy to expand its presence in the software and services arena - goals previously outlined by CEO Leo Apotheker. In addition, the spinoff would be consistent with HP's efforts to reduce its dependence on the declining PC business.

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Founded in Cambridge in 1996, Autonomy is an enterprise software company with clients such as Coca-Cola, Nestle and US securities regulator SEC.

HP saw revenues in the Americas grow 2% to US$13.8bn during its fiscal second quarter, ended April 30, according to financial results released by the company.

Global net profits for 2Q11 were reported at US$2.30bn, up 4.7% compared to US$2.20bn during 2Q10. HP saw its global revenues grow 3% from US$30.9bn in 2Q10 to US$31.6bn in 2Q11.