HP to pay $10B for Autonomy as it exits mobile

August 18, 2011 - 6:40 PM

PALO ALTO, Calif. (AP) — Hewlett-Packard is buying business software maker Autonomy for about $10 billion.

The acquisition announced Thursday comes amid a flurry of other dramatic moves that will reshape HP, the world's largest technology company by revenue.

The price Hewlett-Packard Co. is paying for England-based Autonomy Corp. works out to $42.11 per share. That's 64 percent higher than Autonomy's previous closing price.

Among other things, Autonomy makes search engines that help companies find vital information stored across computer networks.

HP will be hoping the Autonomy deal works out better than its $1.8 billion acquisition of device maker Palm last year.

In a surprise move, HP disclosed plans to stop making smartphones and tablet computers running on Palm's software. HP also is looking to jettison its personal computer business in a sale or spinoff.