Autonomy loses its autonomy
The news that Cambridge technology leader Autonomy is to be bought by HP for £7 billion has led to plenty of soul-searching and editorialising about British tech know-how being (again) being subsumed into an international megacorporation.
Like many people I’m sad that Autonomy is no longer independent, but it was definitely coming. Autonomy had put itself in the shop window – for example through sports sponsorship of both Spurs and the Mercedes Grand Prix team (interesting that HP is a previous Tottenham shirt sponsor) and CEO Mike Lynch has had a robust/adversarial relationship with the city, characterised by complaints that the company share price didn’t reflect the real value of the business. And HP paying a premium of 64 per cent on yesterday’s closing price seems to bear out his stance.
But this isn’t the end for Autonomy or its impact on the Cambridge tech scene. While overseas operations may well be merged into local HP offices, it makes no sense to shut down R&D in Cambridge as HP doesn’t have any similar technologies within its software portfolio. Autonomy is at the centre of a Cambridge cluster of businesses based on intelligent search (in one form or another) and this can only continue and grow if, as promised, HP invests in its new acquisition.
Add to this that there is now a serious amount of potential investment floating around Cambridge in particular and the UK in general for new tech ventures and, over time, this can only significantly strengthen the UK software scene. So time to celebrate success and look to the future rather than indulge in hand-wringing about British assets falling into foreign hands.
- HP to buy Autonomy for $11 billion (ft.com)