HP Boardroom scandals and incompetency ruined Autonomy merger claims Mike Lynch

Boardroom scandals, management shakeups and incompetency within HP were to blame for the over-valuation of Autonomy, its Founder Mike Lynch has claimed.

His claims come in a counter-lawsuit to HP’s suit brought against him and Autonomy’s former CFO which states “accounting misrepresentations” caused HP to massively over-pay for Lynch’s company.

The US computer giant paid $11.7billion for the business in 2011, however this was written down by $8.8billion.

Lynch’s countersuit states: “Although the market capitalisation of Autonomy was put at $6.4billion, when including its own estimates of synergies on the deal, HP valued Autonomy at $17.1billion.