RealTime IT News

Autonomy Pays $507M for Verity

Infrastructure software maker Autonomy will pay $507 million in cash for enterprise search specialist Verity , the companies announced today.

"The combination creates a compelling company with over 16,000 customers," Verity CEO Anthony J. Bettencourt said in a conference call with reporters and financial analysts.

The deal between Cambridge, England-based Autonomy and Sunnyvale, Calif.-based Verity requires shareholder and regulatory approval and is expected to close later this year or in early 2006.

Verity executives said that the company did entertain other offers, but that Autonomy was the best fit.

The combined entity will be branded Autonomy and maintain global headquarters in Cambridge, England; Verity's offices will become the base for U.S. operations.

In addition to its products, which include information access, business search and process management, there are several complementary aspects to the merger, Bettencourt said.

Verity is strong in the United States, while Autonomy in strong Europe. And Verity's direct sales force will be supplemented by Autonomy's extensive partner network.

A product roadmap will be released after the acquisition officially closes, and Verity products will continue to be supported.

Mike Lynch, Autonomy's group CEO and co-founder, will continue as CEO while Bettencourt will lead the U.S. operations.