HP alleges accounting fraud in Autonomy deal
20 November 2012 | 0
Hewlett Packard released its fourth-quarter financial results ahead of schedule today, including a charge for $8.8 billion (€69.4 billion) related to its acquisition of UK software firm Autonomy, founded by Mike Lynch, who was born in Tipperary.
Autonomy was founded in Cambridge in 1996 and specialises in data processing using proprietary technologies. Floated on the EASDAQ in 1998, it had acquired various other companies in the data processing sector before being acquired itself by HP in 2011 for what was regarded as a very high valuation of around €7.7 billion.
After a reported brain drain of around 20% of management staff, Lynch himself left the company in May of this year.
HP says the bulk of the charge, for impairment of goodwill and intangible assets, is "linked to serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation plc that occurred prior to HP’s acquisition of Autonomy."
IDG News Service and TechCentral Reporters