Document Boss on HP Acquisition of Autonomy

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Thought they did a fairly good job on this:

Few highlights from it:

Price: “$10.3B, (HP’s) largest technology acquisition to date. This reflects premium valuations of 8.3 x Revenue; 16.5x of EBITDA, and 26.8x of P/E, all based upon 2012 consensus estimates for Autonomy results. As a public company, this reflects an approximate 60% premium over today’s share price and, in excess of a 50% premium, over average share price in 2011.”

Key Effects:
Valuations will continue to hold and increase in the (ECM) sector. Larger companies will continue to pay enhanced multiples for companies they truly desire. This fact will be positive for all sector companies as they pursue exit strategies.”

“While consolidation persists, the sector will continue to expand! In every major deal, key people will leave. In many cases, they will eventually start new companies aimed at solving highly specific business problems. We see this trend continuing; perhaps a new “replace Autonomy” market will emerge.”

Don’t mean to plagerize, but I think they did a great job discussing some of the stuff related to this partifular move.

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