Business World

Wednesday 20 November 2019

Britain's Serious Fraud Office ends HP investigation

Former Autonomy chief executive Mike Lynch blamed HP mismanagement for fall in valuation
Former Autonomy chief executive Mike Lynch blamed HP mismanagement for fall in valuation

Britain's Serious Fraud Office has closed its investigation into the ill-fated sale of British IT firm Autonomy to Hewlett-Packard in 2011, saying there was insufficient evidence for a realistic prospect of conviction.

Autonomy's former chief executive Mike Lynch, an Irish-born mathematics whiz who led the firm when it was sold, has blamed the fall in its valuation on HP's mismanagement.

The US company referred the $11.1bn (9.6bn) acquisition to the British authorities after it announced an $8.8bn writedown in November 2012, with more than $5bn put down to accounting fraud.

Autonomy and its executives have denied any wrongdoing.

HP, which bought Autonomy to shift into software, alleged some former members of Autonomy's management used accounting tricks to inflate the company's apparent worth.

Irish Independent

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