Autonomy To Acquire Video-Management Software Vendor

Autonomy Corp. is acquiring video-management software vendor Virage Inc. in a deal valued at $24.8 million, the companies said Thursday. Autonomy will use Virage's software to extend its line of products for managing unstructured content.

Virage develops video-management software used for video production, Internet publishing, and Webcasting applications. That technology complements the software developed by Autonomy's Dremedia division for analyzing and manipulating video and audio content, says Dominic Johnson, Autonomy's group marketing director. The Virage and Dremedia technologies will be fully integrated very quickly once the buyout is complete, he says.

Autonomy plans to keep the Virage name and operate it as a wholly owned subsidiary. Dremedia will be folded into Virage. About 65 of Virage's employees, including its principals, will continue to work at the company. The acquisition also brings to Autonomy Virage's extensive customer base, including Coca-Cola, General Electric, Citigroup, and the FBI. Virage is especially prevalent in government and entertainment markets.

The companies expect to complete the acquisition by the end of September. Each company's board of directors has approved the deal, but Virage's shareholders must vote to accept the $1.10 per share offer for Virage's stock. That's expected to occur in the next several weeks.