Autonomy and ZANTAZ have reached agreement to merge the companies. The formal announcement says the combination of the two companies (Autonomy is acquiring Zantaz for $375m) will redefine information risk management by proactively automating the full spectrum of consolidated archiving, e-discovery, analytics and real-time policy management uniquely in one system. Customers will benefit from a powerful combination of technology leadership and customer-facing strengths in sales, support and professional services.

As
a publicly-held company with a market capitalization of $3 billion and
over 900 employees, Autonomy allows ZANTAZ to immediately gain the
benefits of a public company of scale, financial security, distribution
and customer base, while continuing to operate as an independent
entity.
ZANTAZ
will also  able to leverage Autonomy’s IDOL technology and incorporate
it into their own systems to enhance e-discovery capabilities and
accelerate product development of features such as conceptual search
and analytics across new unstructured data types like audio and video.

Autonomy’s revenue growth in 2006 was 161% and combined company revenues would be in excess of $400 million. Autonomy’s profit growth in 2006 was greater than 500% with a highly cash generative business model, which enables significant new investment.