Autonomy to spin out consumer business

Investment opportunity

Business intelligence software specialist Autonomy Corporation plc is to demerge its consumer unit and list the new company Blinkx plc on London’s Alternative Investment Market, raising $50 million for development of the business.

Throughout its 11-year history Autonomy has invested in consumer applications of its core technology, which the company says will position Blinkx as the world’s leading video search engine.

Blinkx’s focus on providing search services in the consumer internet sector differs from Autonomy’s focus on enterprise software, and the rational is that as separate a company the new offshoot will be better positioned to compete, and to raise its profile with content and distribution partners and end users.

Autonomy will retain 10 per cent of Blinkx after the demerger. Admission to AIM will take place by the end of May 2007. Autonomy’s founder, Dr Michael Lynch, says he will take part in the placing.