|Weekly News Digest
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Autonomy to Acquire Interwoven, Inc.
Autonomy Corp., plc (www.autonomy.com), a provider of infrastructure software, and Interwoven, Inc. (www.interwoven.com), a provider of content management software, announced that they have entered into a definitive agreement under which Autonomy will acquire Interwoven. The acquisition agreement proposes that Interwoven stockholders receive $16.20 in cash for each outstanding Interwoven share, representing approximately $775 million. All directors and selected executive officers of Interwoven and Autonomy have agreed to vote in favor of the acquisition. The deal is expected to close in 2Q 2009 and is subject to the usual shareholder and regulatory approvals and other customary closing conditions.
The companies expect that a combined customer base in excess of 20,000 will provide additional scale and significant cross-selling opportunities. Combining the two companies is designed to accelerate the delivery of the next-generation, unstructured information management software.
The acquisition will strengthen Autonomy’s access to the worldwide legal and compliance industry through Interwoven’s sales force with industry expertise. The acquisition exploits Autonomy’s skills and strong track record in integrating businesses.
The companies say they expect to achieve synergies of approximately $40 million per annum over the first year from completion, from a combination of duplicative general and administrative marketing programs and other redundant costs.
Commenting on the acquisition, Mike Lynch, group CEO of Autonomy, says, "The combination of Autonomy and Interwoven, industry leaders in Meaning Based Computing and document and content management respectively, will continue the extension of Autonomy’s IDOL as a key element of the regulatory, legal and compliance industries. Our past acquisitions have clearly demonstrated how Autonomy can quickly and effectively leverage the power of IDOL into new customer bases and to address new customer needs. We are very familiar with Interwoven, its product base and management team through our partnership and joint customers over the years and see this transaction as an exciting opportunity to extend the chain of Autonomy’s solutions."
Source: Autonomy Corp., plc
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