“Listening to the whispers and you won’t have to hear the screams “: this instance of exemplification is surely what the acquisition among the tech giant Hewlett Packard virtuously tells about on collaboration with autonomy.
As a part of the technological driven scenario major merger and acquisition which take place among the software and hardware company was indeed the matter of great subject to everyone across the world.in 2011 When Hewlett Packard came forward with the interest of buying the then software firm founded in US autonomy.
Narration of the ill-fated deal
The deal was being taken into consideration when in the year 2011 the CEO of Hewlett Packard and the CEO of Autonomy came across the similar portal to merger and work as a joint association. But as soon as the acquisition got profound with the passage of time the acquisition encountered parable of stumbling blocks across its pathway of an effective implementation.
Hewlett Packard as a very famous technological based firm in California appointed Leo Apotheker as the new CEO of the company. HP has indeed various instances where the leadership of Apotheker has proved it’s mighty worth many a times.It was during the certain time of acquisition also that the company was being headed by him.He certainly believed that this acquisition of the software company named Autonomy which was founded at the Cambridge University, UK. Packard had seem this acquisition to be as a capability which collaborated the software and the hardware divisions under the similar platform. removes rated the hardware market and the software market of computing . And HP could just do the best with it by acquiring the company which already had a domain in software engineering.
Earnest obscene accounting fraudulent
Soon just after one year of acquisition it was in the year 2016, September 7 that Hewlett Packard announced to sell off the deal with the software division to micro focus for about 8.8 billion dollars.
Only on note of varied accounting irregularities which had held within the finances of the organisation has led to now, suffer Hewlett Packard from the dues of major accounting losses. The foremost reason which was cited for the implication of the same was considered to be the serious accounting improper improprieties which confronted various misinterpretation followed by the array of serious allegations being opposed over one another among the firm members on note of fraudulent and disastrous public relation being ascertained by the two corporations
During the earlier quarter only, many of the major shareholders during the time of acquisition cited that this was not one of the reliable decision as for most of them the collaboration has been overshadowed with the fact that GP has overpaid for the purchase of autonomy because of even a drastic stock price fall was also seen in the shares of Hewlett Packard.
The management distress
Soon as the acquisition of the two firms had taken place there was a major change in the management structure. The replacement of the CEO had changed the leadership from Apotheker to Whitman which certainly caused a distress among the employees in the management style.
So what actually happened to be was that the management style of the two organisation felled prey into the hands of serious conflict issue. And the reason which is to be quoted for these advent changes could be that initially the leadership changes due to the fact that the CEO left the organisation due to which about 25 % of the staff also left the company and the other was that the management of autonomy was still inbuilt. And soon a sense of realisation has back dropped notably that it’s not every time usual that the same resources and value base of knowledge is being transferred from one organisation to another during the course of the acquisition.
Was Autonomy destroyed by Hewlett Packard??
With those majority of manifestation which was going across ever since the acquisition had taken place , it was in the year 2014, serious charges were posed on chief financial officer Hussain for carrying out various fraudulent financial activities as the executive of the organisation. Consequently after one year i. e in 2015 both the organisation were found to sue each other for the allied charges of fraudulent , claiming about 100 million damage which has been damaged.
As a matter of fact most of the software companies are found to have high definition revenues which are in terms of the deferred amount that means they want more of the services yet to which amount is being receivable. they have received , but the irony is that this case of entirely opposite in case of autonomy case.
It was the battle of almost about nine months that was included in the testimony of the key players who were part of 2011 acquisition. Autonomy under good examination over the take of Sushovan Hussain was given up as a fraud title for overstating the company’s value Linked with various irregularities which he had taken place in due course of time while he was serving as the chief financial office of autonomy. It certainly came evident in the year 2019 that both the CEO mike lynch and CFO Sushovan Hussain were engaged in fraudulent activities while they were serving as the authority of autonomy and were also responsible for reporting serious accounting deceit in properties of serious misinterpretations and disclosure of the failures which were a part of major consideration during the notion of the acquisition. As a result of the US judiciary found him guilty for a fraud of about 11.1 USD billion sales in 2011 to Hewlett Packard. Sushovan Hussain has also been fined with 4 million USD and a five year sentence for the same.
Coming to the proximal end of the discussion it can be inferred that Hewlett and Packard and Autonomy had major conflicts over the management initially but those even gained fire on the grounds of the inbuilt counterfeit which was being breaded by the company executives only and eventually led to the failure of this acquisition.