Tuesday, February 4, 2014

HP finds evidence that Autonomy misrepresented profits before $11.1 billion purchase


Hewlett-Packard completed the purchase of customer and data management software company Autonomy for $11.1 billion in October 2011. Just over a year later, the computer giant devalued the purchase by $8.8 billion, and alleged that the owners of the UK-based Autonomy used "accounting improprieties" to seriously misrepresent the company's actual worth. Now, thanks to an audit of Autonomy's 2010 and 2011 financial results performed by Ernst & Young, HP says it has significant evidence that the British company reported unrealistic revenue and profit values prior to its purchase.


Autonomy's financials had been audited twice prior to its purchase by external firms KPMG and Deloitte. Both firms found no irregularities. But HP says the more...


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