HP has agreed to buy British software firm Autonomy Corp for $11.7 billion (€8.2 billion).

Autonomy was founded by Irish man Mike Lynch who is also the company's chief executive and holds more than 8 per cent of the London-listed company's stock. His shares would be worth about $813 million (€567 million) based on a deal value of about $10 billion.

Autonomy, which is Britain's second-largest software-maker, offers programs used in database search.

The company's customers include Coca-Cola, Nestlé and the US Securities and Exchange Commission.

HP chief executive Leo Apotheker, who took the helm in November, has said he wants to expand in software and cloud services, which help customers perform computing tasks online.

HP has been aiming to lessen its dependence on PCs, where growth has stalled as consumers flock to smartphones and tablet-style computers.

"This is the direction we want him to take," said Abhey Lamba, an analyst at ISI Group in New York. "Get out of a low-margin business."

Before coming to HP, Mr Apotheker worked for more than 20 years at German software-maker SAP.

Autonomy's US-traded shares rallied 51 per cent to $38.50 for their biggest intraday gain in six years.

Bloomberg