HP-Autonomy Inquiry Closed By Fraud Office
UK investigators drop their inquiry into the contentious 2011 acquisition, but the US authorities continue to examine the deal.
Monday 19 January 2015 14:20, UK
The Serious Fraud Office has closed its investigation into the sale of British software firm Autonomy to Hewlett-Packard, citing a lack of evidence.
The US IT giant bought the firm for £7bn back in 2011, but later
Autonomy and its executives denied any wrongdoing.
HP, which bought the firm as a move into software, alleged "some former members of Autonomy's management team used accounting improprieties, misrepresentations and disclosure failures" to inflate the company's apparent worth.
But Autonomy's former chief executive, Irish-born Mike Lynch, who led the firm when it was sold, has blamed the fall in its valuation on mismanagement by HP.
Fallout from the purchase led to the departure of senior HP executives and led to criminal and civil inquiries on both sides of the Atlantic.
But the SFO said in a statement: "In respect of some aspects of the allegations, the SFO has concluded that, on the information available to it, there is insufficient evidence for a realistic prospect of conviction."
It handed jurisdiction over the case to US authorities, whose investigation is ongoing.
HP said following the SFO's decision: "As the SFO made clear, the US authorities are continuing their investigation and we continue to cooperate with their investigation.
"HP remains committed to holding the architects of the Autonomy fraud accountable."