Feeds

Autonomy swoops on Virage

Video Play

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Autonomy, the world's most hyped search software company post-AltaVista and pre-Google, is snapping up Virage Inc. for $24.8m.

The net purchase price of this US webcast and video production software developer falls to $13.3m after Virage's expected net cash balance is put into the pot. Autonomy expects the purchase to be accretive to earnings within six months of closing and says it will have a cash balance of around $110m on completion.

It will be interesting to see how Autonomy will turn around Virage, a company which lost a whopping $18.1 million on sales of $12.9m for the year ended March 31, 2003. The previous year, the company recorded a net lost of $27.8m on sales of $$16.7 million.

With a record like this you can see that Virage's cash balance wasn't necessarily going to last too long as an independent.

For its money, Autonomy gets c.400 Virage customers and the chance to shoehorn its unstructured search technology, IDOL, and its own video production software, Dremedia, into Virage products. It expects combined Autonomy and Virage products to hit the street in the first quarter post-acquisition.

In a statement, Dr. Mike Lynch, CEO, said Virage will "also significantly broaden Autonomy's installed base of enterprise, media and entertainment, educational and government customers."

Virage's board has recommended the deal which has already received 40 per cent acceptance. Broadview advised Virage on terms, while Autonomy used Deutsche Bank Securities. ®

Autonomy press release

Beginner's guide to SSL certificates

More from The Register

next story
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
Hey - who wants 4.8 TERABYTES almost AS FAST AS MEMORY?
China's Memblaze says they've got it in PCIe. Yow
Cray-cray Met Office spaffs £97m on VERY AVERAGE HPC box
Only 250th most powerful in the world? Bring back Michael Fish
IBM, backing away from hardware? NEVER!
Don't be so sure, so-surers
Microsoft brings the CLOUD that GOES ON FOREVER
Sky's the limit with unrestricted space in the cloud
'ANYTHING BUT STABLE' Netflix suffers BIG Europe-wide outage
Friday night LIVE? Nope. The only thing streaming are tears down my face
Google roolz! Nest buys Revolv, KILLS new sales of home hub
Take my temperature, I'm feeling a little bit dizzy
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.