Knowledge management software vendor Autonomy plans to spin out its consumer division Blinkx, which is expected to be float on the AIM market of the London Stock Exchange.
San Francisco, California-based Blinkx claims to be the world’s largest and most advanced video search engine and aims to capitalize of the vast growth in demand for video clips and IPTV made possible by with widespread availability of broadband.
Blinkx was founded in 2004 by Suranga Chandratillake, Autonomy’s former CTO in the US, and is based on the application of Autonomy’s IDOL technology. Cambridge, UK-based Autonomy revealed nothing about Blinkx’s finances, though said it plans to retain a 10% stake when it holds the IPO.
CEO Michael Lynch said that having taken the consumer applications through the development phase and into commercial roll-out, now is the time to split these activities from core enterprise software business because they had different market characteristics and funding requirements.
News that investors are to get shares in Blinkx, combined with better-than-expected first-quarter results, continued to drive Autonomy’s shares upward. Its stock market value of 1.4bn pounds ($2.8bn) has more than tripled in the last two years. The stock is also supported by the prospect that Autonomy will be an acquisition target. Oracle, which already OEMs its software, is the obvious candidate.