Enterprise data search company Autonomy is to buy its main US rival Verity for £300m to boost sales and improve its R&D.
British-owned Autonomy was a darling of the dotcom boom and is one of the few companies from that era that has successfully grown into an international technology heavyweight.
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Autonomy customers include the BBC, Astra Zeneca and Vodafone.
Under the terms of the deal, Mike Lynch, Autonomy group chief executive officer and co-founder, will continue as CEO of the expanded group, and Anthony Bettencourt, CEO of Verity, will become CEO of the newly formed Autonomy Inc in the US.
The deal is expected to be completed by the end of the year and is subject to Autonomy and Verity shareholder and regulatory approval.
Lynch said, “This is a transformational acquisition for Autonomy. The combination of Verity's core competencies within our main Intelligent Data Operating Layer platform will allow us to offer a standard for handling all forms of unstructured information. We will also substantially increase our scale and diversify our revenue streams."
Bettencourt said, “Autonomy's technology has been designed over the years to be compatible with Verity's products, as is evidenced in existing joint customers. This deal will make available to each company's customers next-generation technology and advanced functionality while protecting investments in Verity products."
The two firms have an estimated combined 16,000 customers.