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Autonomy widens appeal with new multi-million dollar broadcasting deal

Written by News Desk
Tuesday, 05 August 2008
Autonomy has clinched a multi-million dollar order from an international broadcasting company for its web infrastructure software. The news sent the Cambridge company‘s share price spiralling northwards. Autonomy, this newspaper’s reigning Business of the Year, says the expected value of the deal is more than $10m (£5.104m) over the next year. It adds that the software will enable the broadcaster, which Autonomy was unable to name, to deploy the Cambridge company’s solutions throughout is operations around the world. It is the latest of a series of mega deals that analysts believe will send Autonomy’s stock way past the current £10.26 per share. It is especially significant as it is the second super-contract outside of the financial services market, which has been fertile territory for Autonomy’s software in the aftermath of the sub-prime crisis in the US. Autonomy scooped two deals in the US in a week worth over $85 million (£43m) – one of them with American Big Pharma player Eli Lilly – a $20m+ blockbuster that remains Autonomy’s largest commercial success outside of the financial services sector. It prompted Morgan Stanley to initiate on Autonomy with an overweight recommendation and a price target of 1100p (the price at the time was 923.5p). The latest deal pushed up Autonomy’s share price by 14p to £10.26.