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Autonomy to Acquire Key Iron Mountain Digital Assets
Autonomy's Cloud Platform to Expand to 25 Petabytes of Customer Data, Allowing Thousands of New Customers Access to Autonomy's Advanced Technology
CAMBRIDGE, England and SAN FRANCISCO, May 16, 2011/PRNewswire-FirstCall/ -- Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in
infrastructure software, and Iron Mountain Incorporated (NYSE: IRM), the
information management company, today announced a definitive agreement for
Autonomy to acquire selected key assets of Iron Mountain's digital division
including archiving, eDiscovery and online backup. For customers, this means
access to Autonomy's advanced technology for information governance in
secure, private clouds in data centers around the world.
"We are pleased to announce this transaction, one we have been looking at
for some time, which will bring significant advancements for customers,"
commented Dr. Mike Lynch, Group CEO of Autonomy. "Processing customer data in
the cloud continues to be a strategic part of Autonomy's information
governance business. We look forward to extending regulatory compliance,
legal discovery and analytics to a host of new customers as well as enabling
the intelligent collection and processing of non-regulatory data from
distributed servers, PCs and especially tens of millions of mobile devices.
This will afford the opportunity to bring to these customers the power of
IDOL's meaning-based technology."
Dr. Lynch continued, "In 2007 we correctly predicted the merging of
regulatory archiving and search, and we believe we are now seeing the next
phase where the convergence of regulatory archiving, back-up and data
restoration with operational processing of data in the cloud is coming to
pass. This acquisition makes Autonomy the cloud platform of choice,
processing and understanding 25 petabytes of customer information. IDOL will
allow significantly more value, analytical insight and return to be generated
for our customers from this cloud platform. This places Autonomy at the
centre of the changes in the analytics of unstructured data, processing in
the cloud-based platforms and desktop virtualization.
We've had the opportunity to buy strong assets at an attractive
valuation, and through the application of our intelligent IDOL dark server
technology will greatly increase the efficiency of this offering. Whilst
others may be creating roadmaps around virtualizing the enterprise and
processing information in the cloud, Autonomy is already doing it in the
world's largest private cloud platform."
Acquisition Highlights
- Cash consideration of $380 million (subject to a final
working capital adjustment), funded from Autonomy's existing cash reserves.
Post-closing Autonomy expects to have a gross cash balance of at least $700
million.
- Adds over six petabytes of data under management and more
than 6,000 customers to Autonomy's customer base, bringing Autonomy's private
cloud data to over 25 petabytes and total customer base to over 25,000.
- Assets acquired include digital archiving, eDiscovery and
online backup and recovery solutions of Iron Mountain Digital, but not the
technology escrow service and a medical records archive service and other
smaller operations which were recently shut down.
- Active Iron Mountain Digital customers will continue to be
supported without disruption.
- Autonomy to offer Connected, the digital data protection
product, to existing Autonomy customers across enterprise server, PC and
mobile devices. The addition of this product drives non-regulatory and
structured data into our cloud-based information processing platform.
- Expected go-forward revenues of approximately $130 million
to $140 million.
- Expect to achieve cost synergies of approximately $40
million per annum over the first year from completion, from a combination of
efficiencies from utilization of Autonomy's IDOL server technology and
duplicative general and administrative, data center and marketing programs.
- Restructuring costs of approximately $10 million expected in
the two quarters following completion.
- Acquisition expected to have traditional effect on gross
margins and operating margins in first few quarters following completion with
the result of slight earnings dilution in the first quarter after close,
neutral for the full year 2011, and expected adjusted earnings per share
accretion of approximately 15% in 2012. We would expect gross margins and
operating margins to return to historical levels within one to two quarters
of completion.
- Moderate brought forward tax losses will be assumed.
Timetable and Financial
The acquisition is subject to regulatory review and customary closing
conditions and is expected to close within approximately 45 to 60 days. Based
on the Iron Mountain group's audited accounts for the year ended December 31,
2010, the adjusted OIBDA (as defined in the Iron Mountain accounts)
attributable to their full worldwide digital business was $27.5 million,
whilst the profits attributable to the acquired assets for the year ended 31
December 2010 are break-even on a pro forma basis.
A teleconference call to discuss the transaction will be hosted at
10:00a.m. BST on 16 May 2011. The call will be available live via webcast
over the World Wide Web. To access the live webcast, investors are directed
towards the investor relations section of Autonomy's website,
http://www.autonomy.com. Investors should go to the website approximately 15
minutes prior to the start time of the call to register.
About Autonomy
Autonomy Corporation plc (LSE: AU. or AU.L), a global leader
in infrastructure software for the enterprise, spearheads the Meaning Based
Computing movement. IDC recently recognized Autonomy as having the largest
market share and fastest growth in the worldwide search and discovery market.
Autonomy's technology allows computers to harness the full richness of human
information, forming a conceptual and contextual understanding of any piece
of electronic data, including unstructured information, such as text, email,
web pages, voice, or video. Autonomy's software powers the full spectrum of
mission-critical enterprise applications including pan-enterprise search,
customer interaction solutions, information governance, end-to-end
eDiscovery, records management, archiving, business process management, web
content management, web optimization, rich media management and video and
audio analysis.
Autonomy's customer base is comprised of more than 20,000
global companies, law firms and federal agencies including: AOL, BAE Systems,
BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Deutsche Bank, DLA Piper,
Ericsson, FedEx, Ford, GlaxoSmithKline, Lloyds Banking Group, NASA, Nestle,
the New York Stock Exchange, Reuters, Shell, Tesco, T-Mobile, the U.S.
Department of Energy, the U.S. Department of Homeland Security and the U.S.
Securities and Exchange Commission. More than 400 companies OEM Autonomy
technology, including Symantec, Citrix, HP, Novell, Oracle, Sybase and TIBCO.
The company has offices worldwide. Please visit http://www.autonomy.com to
find out more.
Autonomy and the Autonomy logo are registered trademarks or
trademarks of Autonomy Corporation plc. All other trademarks are the property
of their respective owners.
Autonomy Financial Media Contact:
Edward Bridges
Haya Herbert-Burns
Financial Dynamics
+44-(0)20-7831-3113
autonomy@fd.com
Autonomy Analyst and Investor Contact:
Derek Brown, Head of Investor Relations
Autonomy Corporation plc
+44-(0)1223-448-000
derek.brown@autonomy.com
Source: Autonomy Corporation plc
.
Autonomy to Acquire Key Iron Mountain Digital Assets
Autonomy's Cloud Platform to Expand to 25 Petabytes of Customer Data, Allowing Thousands of New Customers Access to Autonomy's Advanced Technology
CAMBRIDGE, England and SAN FRANCISCO, May 16, 2011/PRNewswire-FirstCall/ -- Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in
infrastructure software, and Iron Mountain Incorporated (NYSE: IRM), the
information management company, today announced a definitive agreement for
Autonomy to acquire selected key assets of Iron Mountain's digital division
including archiving, eDiscovery and online backup. For customers, this means
access to Autonomy's advanced technology for information governance in
secure, private clouds in data centers around the world.
"We are pleased to announce this transaction, one we have been looking at
for some time, which will bring significant advancements for customers,"
commented Dr. Mike Lynch, Group CEO of Autonomy. "Processing customer data in
the cloud continues to be a strategic part of Autonomy's information
governance business. We look forward to extending regulatory compliance,
legal discovery and analytics to a host of new customers as well as enabling
the intelligent collection and processing of non-regulatory data from
distributed servers, PCs and especially tens of millions of mobile devices.
This will afford the opportunity to bring to these customers the power of
IDOL's meaning-based technology."
Dr. Lynch continued, "In 2007 we correctly predicted the merging of
regulatory archiving and search, and we believe we are now seeing the next
phase where the convergence of regulatory archiving, back-up and data
restoration with operational processing of data in the cloud is coming to
pass. This acquisition makes Autonomy the cloud platform of choice,
processing and understanding 25 petabytes of customer information. IDOL will
allow significantly more value, analytical insight and return to be generated
for our customers from this cloud platform. This places Autonomy at the
centre of the changes in the analytics of unstructured data, processing in
the cloud-based platforms and desktop virtualization.
We've had the opportunity to buy strong assets at an attractive
valuation, and through the application of our intelligent IDOL dark server
technology will greatly increase the efficiency of this offering. Whilst
others may be creating roadmaps around virtualizing the enterprise and
processing information in the cloud, Autonomy is already doing it in the
world's largest private cloud platform."
Acquisition Highlights
- Cash consideration of $380 million (subject to a final
working capital adjustment), funded from Autonomy's existing cash reserves.
Post-closing Autonomy expects to have a gross cash balance of at least $700
million.
- Adds over six petabytes of data under management and more
than 6,000 customers to Autonomy's customer base, bringing Autonomy's private
cloud data to over 25 petabytes and total customer base to over 25,000.
- Assets acquired include digital archiving, eDiscovery and
online backup and recovery solutions of Iron Mountain Digital, but not the
technology escrow service and a medical records archive service and other
smaller operations which were recently shut down.
- Active Iron Mountain Digital customers will continue to be
supported without disruption.
- Autonomy to offer Connected, the digital data protection
product, to existing Autonomy customers across enterprise server, PC and
mobile devices. The addition of this product drives non-regulatory and
structured data into our cloud-based information processing platform.
- Expected go-forward revenues of approximately $130 million
to $140 million.
- Expect to achieve cost synergies of approximately $40
million per annum over the first year from completion, from a combination of
efficiencies from utilization of Autonomy's IDOL server technology and
duplicative general and administrative, data center and marketing programs.
- Restructuring costs of approximately $10 million expected in
the two quarters following completion.
- Acquisition expected to have traditional effect on gross
margins and operating margins in first few quarters following completion with
the result of slight earnings dilution in the first quarter after close,
neutral for the full year 2011, and expected adjusted earnings per share
accretion of approximately 15% in 2012. We would expect gross margins and
operating margins to return to historical levels within one to two quarters
of completion.
- Moderate brought forward tax losses will be assumed.
Timetable and Financial
The acquisition is subject to regulatory review and customary closing
conditions and is expected to close within approximately 45 to 60 days. Based
on the Iron Mountain group's audited accounts for the year ended December 31,
2010, the adjusted OIBDA (as defined in the Iron Mountain accounts)
attributable to their full worldwide digital business was $27.5 million,
whilst the profits attributable to the acquired assets for the year ended 31
December 2010 are break-even on a pro forma basis.
A teleconference call to discuss the transaction will be hosted at
10:00a.m. BST on 16 May 2011. The call will be available live via webcast
over the World Wide Web. To access the live webcast, investors are directed
towards the investor relations section of Autonomy's website,
http://www.autonomy.com. Investors should go to the website approximately 15
minutes prior to the start time of the call to register.
About Autonomy
Autonomy Corporation plc (LSE: AU. or AU.L), a global leader
in infrastructure software for the enterprise, spearheads the Meaning Based
Computing movement. IDC recently recognized Autonomy as having the largest
market share and fastest growth in the worldwide search and discovery market.
Autonomy's technology allows computers to harness the full richness of human
information, forming a conceptual and contextual understanding of any piece
of electronic data, including unstructured information, such as text, email,
web pages, voice, or video. Autonomy's software powers the full spectrum of
mission-critical enterprise applications including pan-enterprise search,
customer interaction solutions, information governance, end-to-end
eDiscovery, records management, archiving, business process management, web
content management, web optimization, rich media management and video and
audio analysis.
Autonomy's customer base is comprised of more than 20,000
global companies, law firms and federal agencies including: AOL, BAE Systems,
BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Deutsche Bank, DLA Piper,
Ericsson, FedEx, Ford, GlaxoSmithKline, Lloyds Banking Group, NASA, Nestle,
the New York Stock Exchange, Reuters, Shell, Tesco, T-Mobile, the U.S.
Department of Energy, the U.S. Department of Homeland Security and the U.S.
Securities and Exchange Commission. More than 400 companies OEM Autonomy
technology, including Symantec, Citrix, HP, Novell, Oracle, Sybase and TIBCO.
The company has offices worldwide. Please visit http://www.autonomy.com to
find out more.
Autonomy and the Autonomy logo are registered trademarks or
trademarks of Autonomy Corporation plc. All other trademarks are the property
of their respective owners.
Autonomy Financial Media Contact:
Edward Bridges
Haya Herbert-Burns
Financial Dynamics
+44-(0)20-7831-3113
autonomy@fd.com
Autonomy Analyst and Investor Contact:
Derek Brown, Head of Investor Relations
Autonomy Corporation plc
+44-(0)1223-448-000
derek.brown@autonomy.com
Source: Autonomy Corporation plc
.