Autonomy Corporation of Cambridge is to float its consumer division on the London Stock Exchange’s AIM market. At the same time the compny will excercise its option to buy the privately owned video search website Blinkx and merge this with the new company to be called Blinkx.
The consumer unit, to be listed as Blinkx plc, is to be demerged from Autonomy as Blinkx’s focus on consumer-directed search services differs from Autonomy’s focus on enterprise applications, and as a result the companies address different markets and clients. As an independent company, Blinkx plc will be better positioned to focus its resources on its own client base. In addition, and in connection with its client enhanced focus, the demerger will aid blinkx in continuing to establish its brand and identity.
Shares in Blinkx plc are expected to start trading as a separate company in May 2007. After the demerger and any associated offering, Autonomy is expected to hold approximately 10% of Blinkx plc’s ordinary shares.