Hewlett-Packard on Monday revealed new details in its claim that it was bamboozled into vastly overpaying for British software company Autonomy. which it bought for about $11 billion in 2011.
Only months after consummating the deal, HP of Palo Alto wrote off $8.8 billion of Autonomy’s value, claiming the software company’s worth had been falsely misrepresented. Although Autonomy’s former CEO, Mike Lynch, has repeatedly denied that accusation, HP’s claims are being investigated by U.S. and British authorities.
On Monday HP disclosed two reports by its auditors that found Autonomy’s main business unit — Autonomy Systems Limited — had overstated its 2010 revenue by 54 percent and its profit that year by 81 percent.
In response, a statement issued by “a spokesperson for the former senior management of Autonomy” noted that the alleged overstatement is small, compared to the $8.8 billion that HP wrote off. It added the HP’s claims largely stem from differences of opinion over how revenue should be accounted for and that “we continue to reject these allegations by HP.”
Photo by Kristina Sansahachart, Daily News