Autonomy Sale Signals Software Boom as SAP May Be Targeted

Hewlett-Packard Co.’s $10.3 billion takeover of Autonomy Corp. bolstered valuations for European software makers, highlighting their attraction compared with hardware providers.

HP is paying about 24 times earnings before interest, taxes, depreciation and amortization, a multiple that was last matched by Oracle Corp.’s acquisition of Peoplesoft Inc. in 2003, according to data on comparable deals compiled by Bloomberg. SAP AG is seen as both a possible target, for Microsoft Corp. or International Business Machines Corp., and as a possible buyer, of companies such as Software AG and Temenos Group AG, analysts said.