Hewlett Packard acquisition of British software giant Autonomy has gone through – with the Cambridge-based company costing $12 billion (£7.7bn).

HP has paid a 79 per cent premium on each share offering £25.50, something that did not sit well with the company's shareholders.

That dissent, along with the controversial decision to announce that the hardware business would be spun off, was enough to end Leo Apotheker's tenure as CEO.

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But replacement Meg Whitman has supported the Autonomy purchase, describing it as central to the company's new direction.

Autonomy was founded in 1996 as a spin-off from Cambridge Neurodynamics, a company it later acquired along with key rival Verity Inc.

The company, which principally deals with enterprise software, will be run as a separate business unit with founder Mike Lynch in charge - who will no doubt be hoping to put an embarrassing public spat with Oracle behind him.

Via Reuters