On the 18th of August 2011, Hewlett Packard, under the leadership of then-CEO Leo Apotheker, declared a friendly acquisition of U.K.-based Autonomy, a market leader in the management of structured and unstructured data for company management solutions, for the $11.1 billion. This attainment drew tremendous media attention, comprising both cost and its size. The offer price paid to Autonomy was at GBP25.5 a share, a 64% premium over its preceding day's stock price.
Although several critics had argued that the price was excessive, many considered the change in HP's strategic direction was appropriate. Could this deal have gone so wrong? Did HP not carry out appropriate due diligence and valuation before the offer? Was this attainment a calculated fit to HP? This scenario offers a chance for pupils to analyze the corporate strategy of HP, examine HP's fiscal performance general and its various business segments, determine how and if Autonomy fits in with HP, and worth the acquisition using discounted cash flow (DCF) and multiples analyses.
PUBLICATION DATE: August 01, 2013 PRODUCT #: TB0361-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
Related Case Solutions & Analyses:
Motivated Reasoning, Leadership and Team Performance
Work from Home: Curse or Boon?
Aspire Foundation – Charting a Social Bricoleur’s Growth
Dubai Ports World in the USA (A)
K2: Brotherhood of the Rope (B)
Avon Products China (A)
Surviving the Surge: New York City Hospitals Respond to Superstorm Sandy
The Pebble Mine (F): U.S. Environmental Protection Agency
Apple: Privacy vs. Safety?
Honda Canada (A): Tsunami and Communications
