Autonomy Corporation

Template:Short description Template:Use British English Template:Use dmy dates Template:Infobox company Autonomy Corporation PLC was an enterprise software company founded in Cambridge, United Kingdom in 1996. The company developed and sold a variety of enterprise software, including for big data analytics, information governance, data protection, and digital marketing.

Autonomy was acquired by Hewlett-Packard (HP) in October 2011, renaming it HP Autonomy. The deal valued Autonomy at $11.7 billion (£7.4 billion). Within a year, HP had written off $8.8 billion of Autonomy's value.<ref name="telegraph25nov2012" /> HP claimed this resulted from "serious accounting improprieties" and "outright misrepresentations" by the previous management.<ref name="NYT2012-11-20"/><ref name="BBC2012-11-20"/> The former CEO, Mike Lynch, said that the problems were due to HP's running of Autonomy.<ref name="Telegraph2012-11-21"/>

HP recruited Robert Youngjohns, ex-Microsoft president of North America, to take over HP Autonomy in September 2012. In 2015, HP was split into HP Inc and Hewlett Packard Enterprise (HPE); HP Autonomy assets were divided between them with HPE taking the larger part. HP Inc later sold its Autonomy content management assets to Canadian software company OpenText in 2016. In 2017, HPE sold its remaining Autonomy assets, as part of a wider deal, to the British software company Micro Focus.<ref name=mfmerger/> In 2023, OpenText acquired Micro Focus, and reunited the two halves of former Autonomy assets.<ref name="sharesmagazine.co.uk">Template:Cite news</ref>

History

Inception and expansion

Autonomy was founded in Cambridge, England by Michael Lynch and Richard Gaunt in 1996 as a spin-off from Cambridge Neurodynamics, a firm specializing in computer-based fingerprint recognition.<ref>Security Group Seminar Template:Webarchive University of Cambridge</ref><ref>The Kindness of Strangers Template:Webarchive VNU Net</ref> It used a combination of technologies born out of research at the University of Cambridge and developed a variety of enterprise search and knowledge management applications using adaptive pattern recognition techniques centered on Bayesian inference in conjunction with traditional methods. It maintained an aggressively entrepreneurial marketing approach, and sales controls described as a "rod of iron" - allegedly firing the weakest 5% of its sales force each quarter whilst cosseting the best sales staff "like rock stars".<ref name="telegraph25nov2012">Rage of the Titans: Whitman vs Lynch, The Telegraph, 25 November 2012</ref>

Autonomy floated in 1998 on the EASDAQ exchange at a share price of approximately £0.30. At the height of the "dot-com bubble", the peak share price was £30.<ref>Template:Cite web</ref><ref>Template:Cite news</ref>

December 2005: Autonomy acquired Verity, Inc., one of its main competitors, for approximately US$500 million.<ref>Template:Cite web</ref> In 2005 Autonomy also acquired Neurodynamics.<ref name=directors>Template:Cite web</ref>

May 2007: After exercising an option to buy a stake in technology start up Blinkx Inc, and combining it with its consumer division, Autonomy floated Blinkx on a valuation of $250 million.<ref>Template:Cite web</ref>

July 2007: Autonomy acquired Zantaz, an email archiving and litigation support company, for $375 million.<ref>Template:Cite web</ref>

October 2007: Autonomy acquired Meridio Holdings Ltd, a UK company based in Northern Ireland that specialised in Records Management software, for £20 million.<ref>Template:Cite web</ref>

28 May 2008: Kainos extended its partnership with Autonomy for high-end information processing and Information Risk Management (IRM) to deliver information governance solutions to its customer base.<ref>Template:Cite web</ref>

January 2009: Autonomy acquired Interwoven, a niche provider of enterprise content management software, for $775 million.<ref>Template:Cite news</ref> Interwoven became Autonomy Interwoven and Autonomy iManage.

In 2009 Paul Morland, a leading analyst, started raising concerns about Autonomy's exaggerated performance claims.<ref>Template:Cite news</ref>

June 2010: Autonomy announced that it was to acquire the Information Governance business of CA Technologies. Terms of the sale were not disclosed.<ref>Autonomy to Acquire CA's Information Governance Business Template:Webarchive News article from InfoGrok</ref>

5 May 2011: The Mercedes Formula One team announced an $8 million sponsorship deal with Autonomy, and on 8 July 2010 Tottenham Hotspur FC announced a two-year sponsorship deal with Autonomy for their Premier League kit.<ref>Template:Cite web</ref> For the 2011–12 season Spurs' Premier League shirt featured Autonomy's augmented reality technology Aurasma.<ref>Template:Cite web</ref>

16 May 2011: Autonomy acquired Iron Mountain Digital, a pioneer in E-discovery and online backup solutions provider, for $380 million from Iron Mountain Incorporated.<ref>Autonomy buys Iron Mountain's digital archiving outfit Guardian, 16 May 2011</ref>

Hewlett-Packard

Logo of Autonomy following acquisition by Hewlett-Packard (HP)

On 18 August 2011, Hewlett-Packard (HP) announced that it would purchase Autonomy for US$42.11 per share with a premium of around 79% over market price that was widely criticized as "absurdly high", a "botched strategy shift" and a "chaotic" attempt to rapidly reposition HP and enhance earnings by expanding the high-margin software services sector.<ref name="telegraph19aug2011">Autonomy board backs £7bn Hewlett-Packard offer, The Telegraph, 19 August 2011</ref><ref name="reuters3oct2011">HP closes Autonomy deal, Reuters, 3 November 2011: "Hewlett-Packard completed its $12 billion buy of British software firm Autonomy on Monday, the centerpiece of a botched strategy shift that cost ex-chief executive Leo Apotheker his job last month. HP said its 25.50 pounds-per-share cash offer -- representing a 79 percent premium that many HP shareholders found excessive -- had been accepted by investors."</ref><ref name="bloomberg29nov2012">Why Hewlett-Packard's Impulse Buy Didn't Pay Off, Bloomberg BusinessWeek 29 November 2012: "Apotheker believed that HP’s platform was sinking...[and] appeared to be in a hurry to transform the company... In a rapid series of moves announced in August 2011, Apotheker killed HP’s six-week-old TouchPad tablet, explored plans for a spin-out of its PC business, and championed the $10.3 billion acquisition of [] Autonomy. One former HP executive who worked there at the time says it appeared that Apotheker and the board didn’t know what to do, and were trying anything they could think of. It wasn’t a strategy, he says. It was chaos... Oracle CEO Larry Ellison called Autonomy’s asking price 'absurdly high'."</ref> The transaction was unanimously approved by the boards of directors of both HP and Autonomy and the Autonomy board recommended that its shareholders accept the offer.<ref>HP to acquire Autonomy HP Newsroom, 18 August 2011</ref> On 3 October 2011 HP closed the deal, announcing that it had acquired around 87.3% of the shares for around $10.2 billion, and valuing the company at around $11.7 billion in total.<ref>Template:Cite news</ref>

On 10 January 2012, legal entity Autonomy Corporation PLC was converted into private company Autonomy Corporation Limited.<ref>Template:Cite web</ref>

In May 2012, Mike Lynch left his role as Autonomy CEO after a significant drop in revenue in the previous quarter.<ref>HP Autonomy co-founder Mike Lynch replaced Slashgear, 23 May 2012</ref>

In September 2012, Robert Youngjohns was appointed SVP & GM of Autonomy/Information Management Business Unit.<ref name=yj>Template:Cite web</ref>

In November 2012, Hewlett-Packard announced that it was taking an $8.8 billion accounting charge after claiming "serious accounting improprieties" and "outright misrepresentations" at Autonomy;<ref name="NYT2012-11-20">H.P. Takes Big Hit on ‘Accounting Improprieties’ at Autonomy NY Times, 20 November 2012</ref><ref name="BBC2012-11-20">Template:Cite news</ref> its share price fell to a decades' low on the news.<ref name=rogers2012>Template:Citation</ref> Previous management in turn accused HP of a "textbook example of defensive stalling" <ref name="hussainmotion11aug2014">Motion by Hussain, 2014-08-11 p.1-6</ref>Template:Rp to conceal evidence of its own prior knowledge and gross mismanagement and undermining of the company, noting public awareness since 2009 of its financial reporting issues<ref name="hussainmotion11aug2014" />Template:Rp and that even HP's CFO disagreed with the price paid.<ref name="telegraph25nov2012" /><ref name="hussainmotion11aug2014" />Template:Rp External observers stated that only a small part of the write-off appeared to be due to accounting mis-statements, and that HP had overpaid for businesses previously.<ref name="telegraph25nov2012" /><ref name="marketwatch19aug2014">The mysterious case of Hewlett-Packard’s Autonomy deal, Marketwatch, 19 August 2014</ref> Lynch said that the problems were due to HP's running of Autonomy,<ref name="Telegraph2012-11-21">Mike Lynch defends Autonomy accounting methods The Telegraph, 21 November 2012</ref> citing "internecine warfare" within the organization.<ref>Autonomy’s Ex-Chief: H.P.’s Claims ‘Completely and Utterly Wrong’ Dealbook, 21 November 2012</ref> Major culture clashes had been reported in the press.<ref name="telegraph25nov2012" />

The Serious Fraud Office (United Kingdom), and the U.S. Securities and Exchange Commission joined the FBI in investigating the potential anomalies. In January 2015, the SFO closed its investigation as the chance of successful prosecution was low.<ref name=bbcstaff2012>Template:Citation</ref><ref name=owens2012>Template:Citation</ref><ref>Template:Cite news</ref>

Three lawsuits were brought by shareholders against HP, for the fall in value of HP shares. In August 2014, a United States district court judge threw out a proposed settlement involving a fee of up to $48 million: Autonomy's previous management had argued the settlement would be collusive and was intended to divert scrutiny of HP executives' own responsibility and knowledge.<ref>Template:Cite news</ref><ref>Template:Cite web</ref>

Model of 2009 Brawn GP Formula One Team car in Mercedes F1 livery at the Cambridge Business Park Autonomy building lobby.

In November 2013, the HP Exstream customer communication management (CCM) business, formerly part of the HP LaserJet and Enterprise Solutions (LES) business, joined the HP Autonomy organization.<ref>Template:Cite web</ref>

On 30 January 2014, the company announced that one of its partners, Kainos, had integrated HP IDOL 10.5, the new version of HP Autonomy's information analytics engine, into Kainos's electronic medical record platform, Evolve.<ref>Template:Cite web</ref>

On 31 October 2015, Autonomy's software products were divided between HP Inc (HPQ) and Hewlett Packard Enterprise (HPE) as a result of the Hewlett-Packard Company separation. HP Inc was assigned ownership largely consisting of Autonomy's content management software components including TeamSite, Qfiniti, Qfiniti Managed Services, MediaBin, Optimost, and Explore. Hewlett Packard Enterprise retained ownership of the remaining software and legal entity of Autonomy Corporation Limited.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

Acquisition by Micro Focus and OpenText

OpenText acquired HP TeamSite, HP MediaBin, HP Qfiniti, HP Explore, HP Aurasma, and HP Optimost from HP Inc for $170 million on 2 May 2016.<ref>Template:Cite web</ref>

In 2017, HPE sold its Autonomy assets, as part of a wider deal valued at $8.8 billion, to the British software company Micro Focus.<ref>Template:Cite news</ref><ref name=mfmerger>Template:Cite web</ref> Micro Focus acquired the operating subsidiary Autonomy Systems Limited and related foreign subsidiaries on 1 September 2017.<ref>Template:Cite web</ref> Legal entity and former parent company Autonomy Corporation Limited was merged with fellow HPE subsidiary ACL Netherlands B.V. and ceased to exist.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

In April 2018 Autonomy's ex-CFO Sushovan Hussain was charged in the US and found guilty in of accounting fraud,<ref>Template:Cite news</ref> and subsequently allowed out on bail after his appeal raised a "substantial question over his conviction."<ref>Template:Cite news</ref> Hussain's appeal failed in August 2020.<ref>Template:Cite news</ref>

Based on Hussain's evidence, Lynch and Stephen Chamberlain, former vice president of finance at Autonomy, were charged with fraud in November 2018.<ref>Template:Cite news</ref> Lynch said he would contest extradition and that he "vigorously rejects all the allegations against him."<ref>Template:Cite news</ref>

In March 2019, HP brought a civil action in the UK courts. The case was heard in a trial lasting 93 days, with Lynch present in the witness box for 22 days, making it one of the longest cross-examinations in British legal history.<ref>Template:Cite web</ref> In January 2022, the High Court in London ruled that HP had "substantially won" its civil case against Lynch and Hussain in which HP claimed that the two individuals had "artificially inflated Autonomy's reported revenues, revenue growth and gross margins".<ref>Template:Cite news</ref> Lynch and Chamberlain went on trial in San Francisco on 18 March 2024. Lynch was charged with 16 counts of wire fraud, securities fraud and conspiracy, while Chamberlain faced 15 counts of wire fraud and conspiracy. Both pleaded not guilty.<ref name=GuardianTrial>Template:Cite web</ref> The court heard evidence and arguments over the course of 11 weeks, and one count of securities fraud was dropped. The jury retired for deliberation on 4 June.<ref>Template:Cite web</ref> On 6 June 2024, Lynch and Chamberlain were found not guilty of all charges.<ref>Template:Cite web</ref>

In September 2020, Deloitte, who audited Autonomy between 2009 and 2011, were fined £15m for its audits that contained “serious and serial failures”.<ref>Template:Cite news</ref>

In August 2022, OpenText announced that it would acquire Micro Focus in a deal valued at US$6Template:Nbspbillion.<ref>Template:Cite news</ref> The acquisition was approved by the court on 27 January 2023, the transaction was completed on 31 January 2023.<ref name="sharesmagazine.co.uk"/><ref name="crn">Template:Cite web</ref>

In August 2024, Lynch celebrated his acquittal in the San Francisco trial with a cruise on the family superyacht, Bayesian. He was joined by his wife and daughter and nine invited guests, including two lawyers from his defense team. In the early hours of 19 August, the yacht sank off the coast of Sicily, outside the port of Porticello, during a powerful storm, with 22 people on board.<ref name="Grierson">Template:Cite news</ref> Lynch, his teenage daughter Hannah, four guests, and one member of the crew died.<ref name="Tondo">Template:Cite news</ref> Chamberlain died one day later, on 20 August 2024, three days after he was hit by a car while out jogging in Stretham.<ref>Template:Cite web</ref>

Products and services

HP Autonomy products include Intelligent Data Operating Layer (IDOL), which allows for search and processing of text taken from both structured data and unstructured human information—including e-mail and mobile data—whether it originates in a database, audio, video, text files or streams.<ref>Template:Cite web</ref> The processing of such information by IDOL is referred to by Autonomy as Meaning-Based Computing.<ref>Template:Cite web</ref>

HP Autonomy's offerings include:

Marketing Optimization

Web Experience Management, Web Optimization, Search Engine Marketing, Marketing Analytics, Contact Center Management, Rich Media Management

Information Analytics

Voice of the Customer, Media Intelligence, Video Surveillance, Big Data Analytics, SFA Intelligence

Unified Information Access

Enterprise Search, Knowledge Management, Content Access & Extraction

Information Archiving

Compliance Archiving, Litigation Readiness Archiving, Storage Optimization Archiving, Database & Application Archiving, Supervision & Policy Management

eDiscovery

Legal Hold, Early Case Assessment, Review & Analytics, Investigations, Post-Review

Enterprise Content Management

Policy-driven Information Management, Records Management, Legal Content Management, Business Process Management, Document and Email Management

Data Protection

Server Data Protection, Virtual Server Data Protection, Remote & Branch Office Data Protection, Endpoint Device Data Protection

Customer Communications Management

Healthcare Communications, Transactional Communications, State, Local & Federal Communications, Utility & Smart Meter Communications, High Volume Communications<ref>Template:Cite news</ref>

Automated Information Capture

Multichannel automated information capture:, Intelligent document recognition, Intelligent document classification, Remote capture, Validation<ref>Template:Citation</ref>

Haven OnDemand

The API platform for building data rich applications.<ref>Template:Citation</ref> Haven OnDemand features a wide range of APIs for indexing and performing analytics on a range of information from plain text and office documents through to audio and video.

Haven Search OnDemand

An easy to use and quick to deploy Enterprise Search solution built onto of the Haven OnDemand API Platform.<ref>Template:Citation</ref>

Offices

The Autonomy business had primary offices in Cambridge, England, and Sunnyvale, California, as well as other major offices in the UK, the US, Canada, France, Japan, Australia, Singapore, Germany, and smaller offices in India and throughout Europe and Latin America.

External links

• "The Quest for Meaning" WIRED
• Michael Lynch On Meaning-Based Computing