Autonomy to Grow the Inorganic Way
February 10, 2010
Short honk and a happy quack. A reader in the UK alerted me to the alleged $1.0 billion in cash that Autonomy is gathering. The idea is that Autonomy will buy companies to continue its growth. I read the news in “Autonomy to Create One Billion dollar Acquisition War Chest, and I will poke around for a little more information in the morning. Quite a few search and content processing companies are struggling for revenue. A big outfit like Autonomy can snag a few and gain some useful technology. Autonomy may want to move into other types of enterprise software where its technology could add value. The most interesting passage in the write up I saw was:
The Cambridge-based world leader in enterprise search and the UK’s largest tech company by market cap wants to raise the $1bn (£637.4 million) by launching a convertible bond…“The convertible bond vehicle is beneficial for current shareholders and less dilutive for a potential transaction in the short to medium term than other equity financing. “If Autonomy does not use the funds raised in a reasonable time period we would consider returning it to existing shareholders.”
Interesting.
Stephen E Arnold, February 10, 2010
No one paid me to write this. i will report this sad state of affairs to the ExIm Bank, an outfit familiar with financial instruments.
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