HP buys Mercury Interactive for £2.5bn


HP buys Mercury Interactive for £2.5bn

Antony Savvas

HP is acquiring Mercury Interactive for $4.5bn (£2.5bn) as it moves to expand its management software portfolio.

Mercury’s software helps companies with their application development and testing, and HP will combine Mercury’s products with its HP OpenView management and network support software.

The deal will enable HP to increase its annual business software revenue to around $2bn, after the Mercury business is merged into HP’s software division.

There is little overlap between HP’s and Mercury’s products, so HP is hoping for an easy integration between the two product sets.

Tony Baer, principal of analyst group Onstrategies said the merger would provide important supporting products to HP’s service oriented architecture management tools.

Mercury employs around 3,000 and HP has so far not confirmed how many of these staff will be redeployed.

As HP is currently involved in a major headcount cull to cut operating costs in an attempt to improve its bottom line, jobs are expected to go at Mercury too.

Last November, three Mercury executives resigned following an internal investigation into alleged stock option irregularities at the company.

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