Menu
Hewlett-Packard has suitors for Autonomy, EDS divisions

Hewlett-Packard has suitors for Autonomy, EDS divisions

A number of parties have expressed interest in buying HP's Autonomy software business as well as its EDS services arm

A number of parties have expressed interest in buying Hewlett-Packard's Autonomy software business as well as its EDS services arm, according to a Wall Street Journal report published Wednesday.

The report comes in the wake of an alleged accounting scandal at Autonomy, as well as the recent disclosure by HP in a regulatory filing that it would consider divesting parts of its business that "may no longer help us meet our objectives."

Mostly U.S.-based technology companies and their representatives have approached HP in regard to buying Autonomy and EDS, according to the Journal's report. However, HP CEO Meg Whitman is not interested in selling anything just yet, it adds.

Asked about the Journal's story, an HP spokesman said the company wouldn't comment.

Many observers considered the US$10.3 billion price tag Autonomy fetched to be far too high, a view compounded by the alleged accounting improprieties, which HP says occurred prior to the deal.

HP recently announced it would take an $8.8 billion writedown, attributing about $5 billion of that to the alleged accounting issues. Autonomy's founder and former CEO, Mike Lynch, has vehemently denied HP's accusations and maintains it is withholding crucial information.

Autonomy's software focuses on search and data management. Potential suitors could include Dell, which has been making a string of software-related purchases in recent times, and like HP, is otherwise known for its hardware and services. CEO Michael Dell reportedly turned down an opportunity to buy Autonomy before HP acquired it, because the price was too high.

"There are untapped opportunities in enterprise search and text data management, and Autonomy has made little progress under HP's ownership," said analyst Curt Monash of Monash Research. "So Autonomy might be more valuable somewhere else. But any sale would surely be at a huge discount to the acquisition cost."

The range of potential suitors for EDS could be substantial, ranging from fellow large systems integrators such as Deloitte, Accenture and Infosys, as well as software vendors looking to open up a new line of business.

HP last year also took an $8 billion writedown on EDS for "impairment of goodwill" associated with it. In financial circles, "goodwill" refers to intangible assets such as a well-known brand name, which are used to help estimate a company's total value.

"As for EDS, it's sad that a once-great company has fallen so low," Monash said. "The EDS mystique seems wholly gone."


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags international news

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments