Professional Documents
Culture Documents
DRAFT
Preliminary | Subject to Further Review and Evaluation
January 2011
Autonomy Overview
Summary
Dual Headquarters
San Francisco, CA
Cambridge, U.K.
Founding
IPO
Employees
Customers/OEMs
Geographic Mix
Key Verticals
Sales Channel
Product Overview
Financial Performance
($MM, except per share amounts)
Fiscal Year Ended December 31,
Revenue
Annual Growth
Gross Profit
Gross Margin
EBITDA
EBITDA Margin
Free Cash Flow
Free Cash Flow Margin
Net Income
Net Income Margin
Diluted EPS
Annual Growth
2008A
2009A
2010E
2011E
2012E
$503
47%
458
91%
226
45%
121
24%
148
29%
0.68
81%
$740
47%
652
88%
360
49%
191
26%
233
31%
0.97
43%
$866
17%
764
88%
426
49%
281
32%
289
33%
1.09
12%
$963
11%
856
89%
505
52%
322
33%
343
36%
1.27
17%
$1,079
12%
969
90%
585
54%
487
45%
399
37%
1.48
16%
Source: Projections based on Bank of America Merrill Lynch research as of October 19, 2010.
Note: Free Cash Flow defined as Operating Cash Flow less Cap Ex and Investment in Product Development.
Gross Profit adjusted for amortization of acq related intangibles.
EBITDA adjusted for amortization of acq related intangibles, SBC, foreign exchange, and non-recurring items.
Trading Overview
($MM, except per share amounts)
Share Price
Fully-Diluted Equity Value (1)
Plus: Debt (1)
Less: Cash (1)
Fully-Diluted Enterprise Value (1)
14.78 /
$23.66
$5,811
945
1,028
$5,728
CY10E
Revenue
EBITDA
Earnings per Share
Statistic (2)
$866
426
1.09
6.6x
13.4
21.7
CY11E
Revenue
EBITDA
Earnings per Share
$963
505
1.27
5.9x
11.3
18.6
$MM
800
$740
600
30%
$503
$343
400
40%
20%
$251
200
10%
$96
0%
2005
2006
2007
2008
2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007
2008
2009
2010
Historical Margins
Gross
Margins
EBITDA
Margins
94%
100%
91%
89%
80%
91%
45%
60%
29%
40%
88%
49%
34%
70%
60%
50%
20%
10%
0%
0%
5%
IDOL
Product, $249
29%
29%
30%
15%
2006
Deferred
Revenue,
$250
40%
20%
2005
Services, $41
2007
2008
2009
13%
OEM
2%
Ongoing,
OEM Dev,
$115
$11
22%
IDOL Cloud,
$184
Promote: Marketing
$4,000
10,000
8,000
Source:
(1)
(2)
$1,700
$2,000
6,000
4,000
$1,000
$2,700
$3,000
2,000
2010: ~1,200 EB
$4,400
16,000
12,000
Enterprise
generated
content
~240 EB
$MM
$5,000
18,000
14,000
Overlap
~600
EB
$525
$775
$1,100
$0
2010
2012
2014
2016
2018
2020
2007
2008
2009
2010
2011
2012
Drivers
Proliferation of unstructured
information in enterprise IT
Secular migration towards
automation versus adding headcount to
reduce operating expenditures
Applications
Growth
Commercial
Leadership
Enterprise Search
Business Process Management
Business Intelligence
Information Access
Promote: Marketing
Standard
Product
IDOL OEMs
$60
$50
$2
Policy Management
$2
$2
$40
IDOL Cloud
$5
Website
$5
Call Center
$30
$15
Enterprise Search
$51
Hybrid Model
Appliance
Archiving (Arcpliance)
Email (DSmail)
eDiscovery
$20
$10
Legal Hold
$20
eDiscovery
$0
Competitive Positioning
Message Archiving Software (Forrester Wave)
Technology
Standardization
Installed Base
Acquisitions
Symantec
Autonomy
CA
Open Text
EMC
HP
IBM
Quest
Strength of Strategy
Autonomy
InQuira
Recommind
Coveo
Oracle
Endeca
Vivisimo
Oracle
IBM
Google
Microsoft
Ability to Execute
Alterian
FatWire
IPiServer
Autonomy
SDL
Sitecore
Day Software
Ektron
CoreMedia
Percussion
Dynamicweb
Strength of Strategy
Open Text
Clickability
Completeness of Vision
Pharma/Food
Media
Consumer/Mfg
Finance
Legal/Govt
Acquisitions
Acquisition Strategy
Since 2003, Autonomy has successfully acquired 11 businesses with ~$600mm in cumulative LTM revenue
Autonomys strategy has been to focus on specific markets in which IDOL can be substituted as the foundation for existing technologies and
leveraged across customer environments
This has provided Autonomy rapid cost savings and the addition of installed base and channel has created significant cross-sell / up-sell
opportunities associated with additional functionality
Transaction Multiples
Equity
Ent
Revenue
Revenue
P/E
1-Day
Value
Value
LTM
NTM
LTM
NTM
LTM
NTM
Prem
Target
Description
Jun-10
$19
$19
Feb-09
MicroLink
$55
$55
Jan-09
Interwoven
$803
$618
$260
$292
2.4x
2.1x
21.9x
19.5x
Oct-07
Meridio
$41
$41
$27
1.5x
Jul-07
ZANTAZ
$375
$375
$100
3.8x
Nov-05
Verity
$503
$311
$144
$150
2.2x
2.1x
45.0x
32.9x
30%
Apr-05
etalk
$70
$70
$37
1.9x
Jul-03
Virage
$25
$18
$12
1.5x
Mean:
2.2x
2.1x
33.4x
26.2x
34%
Median:
2.0x
2.1x
33.4x
26.2x
34%
Autonomy
Sources: Company filings, press releases, 451 Group and Wall Street Research.
37%
-
Revenue
(CY11E, $MM)
Enterprise Value
($MM)
5-Year
Revenue CAGR
EBITDA Margin
(CY11E, $MM)
SaaS
$30,000
$17,495
$20,000
$16,977
$11,359
$10,000
$0
VMW
$5,000
$4,000
$3,000
$2,000
$1,000
$0
$4,163
ADBE
100%
CRM
$7,940
$7,317
$7,251
$5,728
$4,502
$4,312
$4,001
$2,648
$2,454
$2,180
$1,886
$1,743
TDC
Autonomy
INFA
Software AG
TIBX
OTEX
CNQR
SFSF
QLIK
PRGS
$1,014
$995
$963
$840
$740
$564
$369
$268
$254
RHT
Autonomy
TIBX
INFA
PRGS
CNQR
QLIK
SFSF
ADBE
CTXS
BMC
RHT
$2,109
$2,093
$2,058
$2,023
$3,412
VMW
BMC
TDC
CTXS
CRM
$1,595
Software AG
OTEX
73%
75%
55%
50%
49%
40%
35%
32%
27%
25%
0%
SFSF
60%
52%
Autonomy
46%
45%
VMW
42%
CRM
33%
QLIK
32%
CNQR
32%
30%
RHT
30%
20%
19%
17%
15%
14%
11%
6%
6%
5%
Software AG
INFA
OTEX
CTXS
ADBE
TIBX
BMC
TDC
PRGS
30%
30%
28%
28%
27%
26%
15%
0%
5%
Autonomy
12.0x
EV / Revenue
(CY11E)
Infrastructure Software
$37,845
$40,000
BMC
ADBE
8.6x
8.6x
11.1x
9.0x
VMW
7.4x
PRGS
7.0x
CTXS
6.7x
OTEX
6.1x
6.0x
RHT
5.9x
CNQR
5.5x
Software AG
4.8x
TIBX
INFA
TDC
CRM
VMW
10
CRM
Sources:
Note:
SFSF
RHT
QLIK
CNQR
INFA
Autonomy
CTXS
TIBX
SFSF
4.1x
3.8x
3.5x
3.1x
2.7x
2.6x
ADBE
BMC
TDC
PRGS
Software AG
OTEX
3.0x
0.0x
QLIK
Capital IQ, company filings, press releases and Wall Street research. Excludes stock-based compensation. Autonomy figures based on Bank of America Merrill Lynch research as of October 19, 2010.
Current prices as of January 24, 2011. 5-Year CAGRs based on CY2005 to CY2010.
Revenue growth rate for Qlik Technologies are based on CY2008 to CY2009.
Negative earnings noted as NM.
44%
VMW
Long Term
EPS Growth
Autonomy
21%
19%
17%
15%
13%
13%
11%
10%
9%
CRM
OTEX
Software AG
CNQR
TIBX
BMC
INFA
TDC
RHT
PRGS
ADBE
52%
45%
29%
30%
8%
8%
28%
25%
23%
QLIK
CRM
263.6x
SFSF
CNQR
VMW
58.5x
54.2x
50.0x
48.9x
SFSF
CRM
9.6x
4.0x
3.0x
3.0x
QLIK
2.5x
CNQR
2.4x
VMW
2.2x
18%
17%
16%
15%
15%
14%
13%
12%
12%
RHT
INFA
OTEX
Autonomy
TIBX
PRGS
BMC
Software AG
TDC
CTXS
ADBE
47.1x
RHT
2.2x
2.0x
28.5x
INFA
1.8x
CTXS
1.8x
24.2x
22.5x
18.6x
16.6x
15.5x
14.8x
13.7x
11.4x
TIBX
TDC
Autonomy
PRGS
BMC
ADBE
Software AG
OTEX
1.5x
1.1x
1.1x
1.1x
1.1x
1.0x
ADBE
QLIK
PRGS
Autonomy
BMC
Software AG
1.0x
0.0x
SFSF
159.9x
50.0x
40.0x
30.0x
20.0x
10.0x
0.0x
CRM
RHT
45.7x
38.7x
CTXS
CNQR
SFSF
11
CRM
Sources:
Note:
QLIK
VMW
INFA
TDC
TIBX
VMW
RHT
22.9x
INFA
22.5x
CNQR
17.2x
CTXS
0.6x
OTEX
33.5x
24.7x
SFSF
18%
25.0x
0.0x
CTXS
19%
87.9x
75.0x
QLIK
15%
100.0x
P/E
(CY11E)
0%
P/E/G
(CY11E)
SaaS
38%
27%
60%
EV / EBITDA
(CY11E)
38%
Infrastructure Software
16.8x
TIBX
13.2x
11.3x
9.7x
9.6x
9.5x
8.7x
8.3x
TDC
Autonomy
ADBE
PRGS
Software AG
OTEX
BMC
Capital IQ, company filings, press releases and Wall Street research. Excludes stock-based compensation. Autonomy figures based on Bank of America Merrill Lynch research as of October 19, 2010.
Current prices as of January 24, 2011. 5-Year CAGRs based on CY2005 to CY2010.
EPS growth rate for Qlik Technologies are based on CY2008 to CY2009.
Negative earnings noted as NM.
Board of Directors
Management
Joined AU
Role
Education
1996
Founder,
CEO
Sushovan Hussain(1)
2001
CFO
Stouffer Egan
2001
CEO U.S.
1998
Chief
Research
Officer
CTO, Autonomy;
Neuro-Physiology Research
Andrew Kanter
2000
COO
Eloy Avila
2004
CTO
Ian Black
2000
Head of
Global
Operations
Robert Webb
2009
NonExecutive
Chairman
Richard Gaunt
1996
Founder,
Board
Member
John McMonigall
1998
Board
Director
Jonathan Bloomer
2010
Board
Director
2010
Board
Director
12
Independent Advisors
Joined AU
Role
Education
Barry Ariko
2000
Independent
Advisor
Richard Perle
2000
Independent
Advisor
Anthony Bettencourt
2005
Independent
Advisor
2005
Independent
Advisor
Professor William J.
Fitzgerald
Independent
Advisor
Independent
Advisor
13
Disclaimer
These materials have been prepared by Qatalyst Partners LP (including any affiliates Qatalyst) for the Qatalyst client or potential client to whom such materials are directly
addressed and delivered (the Company) in connection with an actual or potential mandate or engagement and may not be used or relied upon for any purpose other than as
specifically contemplated by a written agreement with Qatalyst. These materials are based on information provided by or on behalf of the Company and/or other potential
transaction participants, from public sources or otherwise reviewed by Qatalyst. Qatalyst assumes no responsibility for independent investigation or verification of such
information and has relied on such information being complete and accurate in all respects. To the extent such information includes estimates and forecasts of future financial
performance (including estimates of potential cost savings and synergies) prepared by or reviewed with the managements of the Company and/or other potential transaction
participants or obtained from public sources, Qatalyst has assumed that such estimates and forecasts have been reasonably prepared on bases reflecting the best currently available
estimates and judgments of such managements (or, with respect to estimates and forecasts obtained from public sources, represent reasonable estimates). No representation or
warranty, express or implied, is made as to the accuracy or completeness of such information and nothing contained herein is, or shall be relied upon as, a representation, whether
as to the past, the present or the future. These materials were designed for use by specific persons familiar with the business and affairs of the Company and are being furnished
and should be considered only in connection with other information, oral or written, being provided by Qatalyst in connection herewith. These materials are not intended to
provide the sole basis for evaluating, and should not be considered a recommendation with respect to, any transaction or other matter. Prior to entering into any transaction the
Company should determine, without reliance on Qatalyst, the economic risks and merits as well as the legal, tax and accounting characterizations and consequences of any such
transaction. In this regard, by accepting this presentation, the Company acknowledges that (a) Qatalyst is not in the business of providing (and the Company is not relying on
Qatalyst for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any transaction, (c) the Company should receive (and rely on) separate
and qualified legal, tax and accounting advice and (d) the Company should apprise senior management as to such legal, tax and accounting advice (and any risks associated with
any transaction) and Qatalysts disclaimer as to these matters. Qatalyst does not provide tax advice. Accordingly, any statements contained herein as to tax matters were neither
written nor intended by Qatalyst to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on such taxpayer. Any discussion
of tax matters in these materials may have been written in connection with the promotion or marketing of any transaction contemplated hereby. Accordingly, any taxpayer
should seek advice based on such taxpayers particular circumstances from an independent tax advisor. These materials do not constitute an offer or solicitation to sell or
purchase any securities and are not a commitment by Qatalyst to provide or arrange any financing for any transaction or to purchase any security in connection therewith.
Qatalyst is not acting in any other capacity as a fiduciary to the Company. Qatalyst assumes no obligation to update or otherwise revise these materials. These materials have not
been prepared with a view toward public disclosure under state or federal securities laws or otherwise, are intended for the benefit and use of the Company, and may not be
reproduced, disseminated, quoted, summarized or referred to, in whole or in part, without the prior written consent of Qatalyst. These materials may not reflect information
known to other professionals in other business areas of Qatalyst.
Qatalyst is a full service securities firm providing investment banking and other services and products to a wide range of corporations and individuals, domestically and offshore,
from which conflicting interests or duties may arise. In the ordinary course of these activities, Qatalyst may at any time hold long or short positions, and may trade or otherwise
effect transactions, for their own account or the accounts of customers, in debt or equity securities or loans of the Company, potential counterparties, or any other company that
may be involved in a transaction.
Qatalyst is required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with it, which information includes the
complete name and address and taxpayer ID number. Qatalyst may also request corporate formation documents, or other forms of identification, to verify information provided.
$40.02
Current
Last 10 Days
Last 30 Days
Last 60 Days
Last 120 Days
LTM
LTM High
LTM Low
20.00
$32.01
14.78
15.50
13.45
14.80
16.66
15.29
19.75
12.71
/ $23.66
/ 24.81
/ 21.53
/ 23.69
/ 26.67
/ 24.47
/ 31.61
/ 20.34
14.92
14.98
14.45
15.42
16.48
/ $23.88
/ 23.97
/ 23.12
/ 24.69
/ 26.38
-
Volume (000s)
20,000
Average
Volume (000's)
1,224
977
1,221
1,336
1,215
-
15,000
15.00
$24.01
10,000
10.00
$16.01
5,000
5.00
$8.00
0.00
Jan-06
0
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Source: Capital IQ. Share prices converted from GBP to USD at a constant spot exchange rate of 1.60.
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Feb 3, 2010:
Reported full year 2009
results in line with analyst
expectations.
Oct 6, 2010:
Announced expectations
that Q3 revenues would be
disappointing.
Volume (000s)
20,000
18.00
$28.81
15,000
16.00
$25.61
10,000
14.00
$22.41
5,000
12.00
Jan-10
0
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Source: Capital IQ. Share prices converted from GBP to USD at a constant spot exchange rate of 1.60.
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Volume (MM)
50
47.6
40.5
40
34.0
30.2
30
27.0
26.1
25.1
20.3
20
14.5
17.7
12.9
10.4
10
6.9
6.4
0.0
12.00
12.50
13.00
13.50
14.00
12.50
$20.01
13.00
$20.81
13.50
$21.61
13.00
$20.81
13.50
$21.61
14.50
15.00
15.50
16.00
16.50
17.00
3.3
0.0
17.50
18.00
18.50
19.00
19.50
20.00
14.00
$22.41
18.00
$28.81
18.50
$29.61
19.00
$30.41
19.50
$31.21
20.00
$32.01
14.00
$22.41
14.50
$23.21
15.00
$24.01
15.50
$24.81
16.00
$25.61
16.50
$26.41
17.00
$27.21
17.50
$28.01
18.00
$28.81
18.50
$29.61
19.00
$30.41
19.50
$31.21
20.00
$32.01
20.50
$32.81
Volume (MM)
% of Total
% of Implied Float (1)
0.0
0%
0%
6.4
2%
3%
10.4
3%
5%
14.5
4%
7%
30.2
9%
14%
26.1
8%
12%
40.5
13%
18%
47.6
15%
22%
27.0
8%
12%
20.3
6%
9%
17.7
5%
8%
25.1
8%
11%
34.0
11%
15%
12.9
4%
6%
6.9
2%
3%
3.3
1%
2%
0.0
0%
0%
Cumulative Volume
% Volume At Or Below Range
Volume / Implied Float (1)
0.0
0%
0.0x
6.4
2%
0.0x
16.8
5%
0.1x
31.3
10%
0.1x
61.5
19%
0.3x
87.6
27%
0.4x
128.1
40%
0.6x
175.7
54%
0.8x
202.6
63%
0.9x
222.9
69%
1.0x
240.6
75%
1.1x
265.7
82%
1.2x
299.7
93%
1.4x
312.7
97%
1.4x
319.6
99%
1.5x
322.9
100%
1.5x
322.9
100%
1.5x
Days
% of Total Days
0
0%
2
1%
7
3%
11
4%
18
7%
22
8%
30
11%
35
13%
17
6%
16
6%
17
6%
24
9%
37
14%
18
7%
10
4%
4
1%
0
0%
Cumulative Days
% Days At Or Below Range
0
0%
2
1%
9
3%
20
7%
38
14%
60
22%
90
34%
125
47%
142
53%
158
59%
175
65%
199
74%
236
88%
254
95%
264
99%
268
100%
268
100%
Source: CapitalIQ. Share prices converted from GBP to USD at a constant spot exchange rate of 1.60.
(1) Assumes 220MM free float shares based on Capital IQ.
2006
Mean
Median
Max
Min
25th Perc
75th Perc
11.0x
10.0x
5.4x
5.4
6.8
3.5
5.0
6.1
8.2x
8.3
9.8
6.7
7.6
8.9
7.1x
7.4
9.0
4.5
6.6
8.0
6.7x
6.6
8.8
5.1
6.3
7.2
6.4x
6.5
7.8
4.9
5.9
7.0
Entire
Period
6.8x
6.8
9.8
3.5
5.9
7.6
9.0x
8.0x
75th Perc = 7.6x
7.0x
Mean = 6.8x
Current = 6.0x
25th Perc = 5.9x
6.0x
5.0x
4.0x
3.0x
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
2006
60.0x
Mean
Median
Max
Min
25th Perc
75th Perc
50.0x
35.4x
35.9
53.2
25.4
30.7
39.7
39.5x
39.6
47.0
29.9
37.5
42.5
27.3x
28.4
37.8
15.6
23.1
31.5
19.8x
19.6
23.0
16.6
18.7
21.0
19.7x
19.6
22.7
16.4
18.7
20.8
Entire
Period
28.2x
27.9
53.2
15.6
19.7
36.7
40.0x
75th Perc = 36.7x
30.0x
Mean = 28.2x
20.0x
10.0x
0.0x
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Institution
Current
(000s)
% of
Outst. (2)
22,171
12,371
12,281
12,116
9,736
8,548
7,383
6,556
5,675
4,788
4,259
3,750
2,612
2,561
2,548
1,531
1,303
1,274
1,270
1,246
1,205
1,136
1,041
909
886
9.2%
5.1%
5.1%
5.0%
4.0%
3.5%
3.0%
2.7%
2.3%
2.0%
1.8%
1.5%
1.1%
1.1%
1.1%
0.6%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
0.4%
0.4%
0
726
1,825
88
0
(153)
4,210
(700)
(1,026)
(700)
2
139
(49)
(601)
500
4
985
(45)
559
(135)
327
495
(218)
767
268
(250)
(438)
(262)
1,890
0
5
1,757
5,366
(108)
(783)
229
848
(186)
841
1,866
43
318
(114)
38
(29)
(101)
(87)
1,259
33
62
Total
101,623
42.0%
129,151
53.3%
4,271
7,268
7,177
12,198
Summary
Top 10 Holders
Top 25 Holders
Sep-09
Jun-09
0
189
(705)
208
56
(370)
(22)
19
(1,622)
(4,586)
53
120
0
3
0
133
0
5
110
69
0
456
5,014
175
(512)
0
3,999
(12,502)
933
149
(46)
164
2
281
9,994
74
577
(656)
(117)
0
1
0
75
118
1,285
0
(736)
939
(346)
75
0
7,959
0
47
0
308
329
(111)
0
0
73
150
(8)
(64)
0
636
0
653
14
0
0
(557)
0
310
379
2,973
4,261
8,531
10,117
(80)
(65)
916
120
(17)
(315)
(100)
553
(780)
(348)
131
(389)
2,848
179
182
664
0
419
(84)
13
198
(69)
(1,958)
10
556
(100)
0
(745)
(150)
(12)
(282)
547
1,002
(1,714)
1,209
3,087
1,213
0
225
0
50
0
(570)
(197)
43
781
(421)
(3,995)
(115)
0
Company (FYE)
Autonomy (Dec.) (1)
Trading Performance
Prem / (Disc) to
Stock Price
LTM
LTM
1/24/11
High
Low
14.78 / $23.66
(25%)
$28.38
159.63
611.08
32.40
21.17
47.55
55.41
23.83
51.47
13.72
(10%)
0%
(4%)
(0%)
(23%)
(13%)
(1%)
(4%)
0%
(22%)
(4%)
(8%)
FD Capitalization
Equity
Ent.
Value
Value
Trading Multiples
Enterprise Value /
Revenue
EBITDA
P/E
CY10E CY11E CY10E CY11E CY10E CY11E
LT EPS
Growth %
Cash
16%
$5,811
$5,728
6.6x
5.9x
13.4x
11.3x
21.7x
18.6x
1.1x
11%
44%
17%
$1,028
66%
87%
140%
33%
29%
60%
79%
60%
32%
60%
65%
$7,992
4,928
4,206
3,979
2,733
2,066
2,042
1,337
1,044
$7,251
4,502
4,001
4,312
2,648
1,743
1,886
1,268
859
3.8x
7.1
5.3
2.9
2.9
3.3
8.8
3.6
2.0
3.6x
4.4x
3.5x
6.1
4.8
2.7
2.6
3.1
7.0
3.0
1.8
3.1x
3.8x
15.2x
28.1
19.6
10.2
9.1
10.8
58.4
29.1
15.0
15.2x
21.7x
13.2x
22.9
16.8
9.5
8.7
9.6
38.7
18.8
12.5
13.2x
16.7x
25.7x
38.8
29.5
14.8
13.1
18.7
105.8
37.3
29.5
29.5x
34.8x
22.5x
32.8
24.2
13.7
11.4
16.6
58.5
26.7
26.3
24.2x
25.9x
1.8x
1.8
1.5
1.0
0.6
1.1
1.1
1.1
2.3
1.1x
1.4x
9%
16%
11%
5%
10%
7%
25%
20%
10%
10%
13%
22%
27%
26%
25%
28%
32%
17%
18%
12%
25%
23%
13%
18%
16%
14%
18%
15%
52%
24%
12%
16%
20%
$741
426
245
148
385
322
156
69
184
109%
33%
57%
39%
56%
56%
59%
$39,024
17,923
12,943
9,068
8,414
$37,845
16,977
11,359
7,940
7,317
13.2x
4.5
6.1
4.0
8.5
6.1x
7.3x
11.1x
4.1
5.5
3.8
7.4
5.5x
6.4x
40.4x
11.8
19.7
9.8
30.4
19.7x
22.4x
33.5x
9.7
17.2
8.3
24.7
17.2x
18.7x
59.1x
17.8
32.1
16.7
55.5
32.1x
36.2x
48.9x
14.8
28.5
15.5
47.1
28.5x
31.0x
2.2x
1.2
2.4
1.1
2.5
2.2x
1.9x
19%
10%
11%
6%
16%
11%
12%
29%
37%
27%
36%
25%
29%
31%
23%
12%
12%
15%
19%
15%
16%
$1,629
2,468
1,591
1,495
1,097
106%
34%
86%
49%
67%
68%
$18,752
2,803
2,514
1,236
$17,495
2,454
2,180
972
10.6x
8.1
10.8
4.1
9.3x
8.4x
8.6x
6.7
8.6
3.3
7.6x
6.8x
58.2x
28.3
255.9
19.8
43.3x
90.6x
45.7x
22.5
159.9
16.1
34.1x
61.0x
108.1x
87.9x
66.5
54.2
483.3
263.6
39.3
31.6
87.3x
71.0x
174.3x 109.3x
3.0x
2.2
9.6
1.3
2.6x
4.0x
23%
21%
26%
24%
23%
23%
15%
24%
3%
14%
14%
14%
29%
25%
28%
24%
26%
26%
$1,281
637
334
264
$250,678 $217,170
205,572 200,847
203,307 189,656
168,601 162,079
121,405
97,902
109,235 120,937
65,961
67,625
56,399
49,210
35,887
32,085
27,032
19,163
3.3x
2.0
8.8
5.1
2.3
0.9
4.0
2.9
1.3
0.3
2.6x
3.1x
3.1x
1.9
7.4
4.4
2.1
0.9
3.6
2.6
1.3
0.3
2.4x
2.8x
7.7x
8.5
14.6
11.5
7.4
6.3
12.3
11.2
9.3
4.1
8.9x
9.3x
7.3x
7.7
12.2
9.2
7.1
5.9
10.6
10.9
8.4
3.9
8.0x
8.3x
0.9x
1.0
1.0
1.1
1.0
0.8
1.0
1.0
1.3
1.2
1.0x
1.0x
7%
5%
18%
14%
9%
5%
11%
12%
1%
5%
8%
9%
40%
20%
49%
44%
27%
12%
31%
22%
14%
6%
24%
26%
12%
12%
18%
13%
12%
12%
16%
16%
12%
8%
12%
13%
$44,173
11,651
13,651
23,995
38,781
10,934
4,730
7,891
4,204
13,863
23%
31%
40%
51%
11%
25%
29%
43%
41%
18%
30%
31%
Source: CapitalIQ; based on consensus estimates. Cash balances pro forma for acquisitions.
(1) USD Stock Price of $23.66. Autonomy figures converted from GBP to USD at a constant spot exchange rate of 1.60.
Operating Statistics
P/E/G
'10-11E
CY11E
CY11E Rev Growth Op Margin
11.9x
13.9
20.6
17.3
13.1
9.9
18.5
19.0
18.8
9.7
15.6x
15.3x
11.1x
12.2
17.5
15.2
12.2
8.9
15.5
16.4
16.0
9.2
13.7x
13.4x
AU @ Mkt
14.78
$23.66
23.00
$36.81
24.00
$38.42
0%
0%
(25%)
16%
(10%)
56%
59%
16%
81%
40%
62%
67%
22%
89%
46%
69%
74%
27%
97%
52%
76%
82%
32%
105%
58%
83%
90%
37%
112%
64%
$5,811
945
1,028
$5,728
$9,989
145
1,028
$9,107
$10,428
145
1,028
$9,545
$10,867
145
1,028
$9,984
$11,305
145
1,028
$10,422
Statistic (3)
$866
963
6.6x
5.9
10.5x
9.5
11.0x
9.9
11.5x
10.4
EBITDA Multiples
CY10E
CY11E
$426
505
13.4x
11.3
21.4x
18.0
22.4x
18.9
Earnings Multiples
CY10E
CY11E
$1.09
1.27
21.7x
18.6
33.8x
29.0
35.2x
30.2
Implied Premiums
Premium to Current Price
Premium to Enterprise Value
Premium to LTM High Share Price
Premium to LTM Low Share Price
Premium to LTM Average Share Price
Statistic
14.78
3,579
19.75
12.71
16.48
/
/
/
/
/
$23.66
$5,728
$31.61
$20.34
$26.38
29.00
$46.42
30.00
$48.02
89%
97%
42%
120%
70%
96%
105%
47%
128%
76%
103%
113%
52%
136%
82%
$11,744
145
1,028
$10,861
$12,182
145
1,028
$11,300
$12,621
145
1,028
$11,738
$13,060
145
1,028
$12,177
12.0x
10.8
12.5x
11.3
13.0x
11.7
13.6x
12.2
14.1x
12.6
23.4x
19.8
24.5x
20.6
25.5x
21.5
26.5x
22.4
27.6x
23.2
28.6x
24.1
36.7x
31.5
38.2x
32.8
39.6x
34.0
41.1x
35.3
42.6x
36.6
44.1x
37.8
Note: Current market prices as of January 24, 2011, converted from GBP to USD at a constant spot exchange rate of 1.60.
(1) Shares outstanding based on Autonomy Form 6-K for the period ended September 30, 2010 and options outstanding based on Autonomy Annual Report for the period ended December 31, 2009.
(2) Net Debt based on Autonomy Form 6-K for the period ended September 30, 2010. Includes 500 ($800) convertible debt with strike price of 20.63 ($33.03).
(3) Projections based on Bank of America Merrill Lynch research as of October 19, 2010.