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Autonomy Completes Acquisition of Key Iron Mountain Digital Assets
Cambridge, England, June 3, 2011 – Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today announced that it has completed the acquisition of selected key assets of Iron Mountain’s digital division including archiving, eDiscovery and online backup.
On 16 May 2011, Autonomy and Iron Mountain Incorporated (NYSE: IRM), the information management company, announced that they had entered into a definitive agreement relating to the transaction. The transaction completed earlier than originally anticipated due to unexpectedly rapid regulatory approvals.
Autonomy’s Q2 results are expected to be announced in late July 2011 when the company will provide an update on the progress of the integration of these assets. As at 2 June 2011, prior to completion of the transaction, Bloomberg analyst consensus estimates for Q2 were revenues of $247 million with EPS (adjusted) of $0.31. Adding to these estimates for the contribution from the Iron Mountain Digital assets during the stub period in Q2 would imply consensus revenues of approximately $254 million to $256 million and consensus EPS (adjusted) of $0.28 to $0.29 for Q2 2011 (including, amongst other things, the dilutive impact of some early restructuring items and one-off transaction-related costs). At the time of announcement of the transaction the company noted the following regarding potential financial impact:
Â· 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 dark server technology and the elimination of duplicative general and administrative, data center and marketing programs.
Â· One-off restructuring costs of approximately $10 million expected in the two quarters following completion. Expected go-forward revenues of approximately $130 million to $140 million.
Â· 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 EPS (adjusted) 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.
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, NestlÃ©, 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 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.
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