HP to acquire Mercury for $4.5 billion

25.07.2006

An SEC investigation probe of the company's accounting methods in 2005 led to the resignation of the company's CEO and CFO in November, 2005. The company was delisted from the Nasdaq Stock Market in January.

In early July, the company was forced to restate its earnings for fiscal years 2002 to 2004 because previous statements did not recognize compensation from internal stock option grants.

Despite its accounting woes, the company has continued to grow. The company purchased SOA vendor Systinet for $105 million in January, then last month announced plans to spend another $18.5 million buying technology from Vertical Solutions Inc. (VSI) and research and development staff and facilities from Tefensoft.