By Marcus Leach
Hewlett-Packard (NYSE: HPQ) and Autonomy Corporation plc (LSE: AU. or AU.L) have announced the terms of a recommended transaction under which Hewlett-Packard will acquire all of the outstanding shares of Autonomy for £25.50 ($42.11) per share in cash.
The transaction was unanimously approved by the boards of directors of both Hewlett-Packard and Autonomy. The Autonomy board of directors also has unanimously recommended its shareholders accept the offer.
Based on the closing stock price of Autonomy on August 17, 2011, the consideration represents a one day premium to Autonomy shareholders of approximately 64 percent and a premium of approximately 58 percent to Autonomy’s prior one month average closing price.
The transaction will be implemented by way of a takeover offer extended to all shareholders of Autonomy. The acquisition of Autonomy is expected to be completed by the end of calendar 2011.