Report: HP close to buying ArcSight for $1.5B

Sep 13, 2010

(AP) -- Computer maker Hewlett-Packard Co. may be close to another major acquisition.

The company is nearing a deal to buy security software provider ArcSight for about $1.5 billion, The Wall Street Journal said on its website Sunday. Based on ArcSight's 34.6 million shares outstanding at Sept. 1, that would value the company at about $43.34 per share - a 23 percent premium to the stock's closing price Friday.

Calls to HP and ArcSight seeking comment on a potential buyout were not immediately returned.

The news comes just a few weeks after HP successfully wrestled company 3Par Inc. from rival Dell Inc. for $2.07 billion, or $33 per share. The deal raised eyebrows among analysts who questioned whether 3Par was worth more than triple what the market had valued the company before Dell and HP started their bidding war.

Now, in its effort to continue expanding beyond personal computers and printer ink, HP may put up more cash for a company that provides technology for protecting business and government computer networks from hackers.

HP, along with many of its rivals in the tech industry, wants to gain market share and diversify its business by offering a broad set of products rather than supply just one piece of the puzzle. The company branched into technology services two years ago with the $13.9 billion acquisition of and last year agreed to buy the computer networking company 3Com for $2.7 billion.

HP isn't the only big tech company tapping the computer security industry for growth. Corp., the world's main provider of chips for PCs, said last month that it will buy McAfee Inc. for $7.68 billion.

ArcSight, based in Cupertino, Calif., is a smaller competitor, with annual revenue in its most recent fiscal year of about $181 million to McAfee's $1.9 billion. It reported a 39 percent jump in quarterly revenue for the three months ended July 31, with earnings more than doubling from the year before to $6.6 million.

The company helps organizations keep tabs on the data flowing through their computer networks and analyze it for signs of hacking, theft or fraud.

The Journal reported last month that ArcSight had been looking for a buyer, naming Oracle Corp., EMC Corp. and IBM Corp. as other potential bidders.

Explore further: Microsoft CEO sees 'bold' plan as 4Q tops Street

not rated yet
add to favorites email to friend print save as pdf

Related Stories

3Par calls HP $30 bid 'superior'; Dell mulls reply

Aug 28, 2010

(AP) -- Data storage company 3Par Inc. says its board has determined that Hewlett-Packard Co.'s $2 billion, $30-per-share takeover bid is superior to a rival offer from Dell Inc., but Dell said Saturday it was mulling over ...

Ahead of the Bell: Brocade shares jump

Oct 05, 2009

(AP) -- Shares of Brocade Communications Systems Inc. jumped in premarket trading Monday after a report the network gear and data storage company is up for sale.

HP's 3Com takeover marks a shot at Cisco

Nov 11, 2009

(AP) -- Hewlett-Packard Co.'s $2.7 billion takeover of 3Com Corp. is a shot at networking leader Cisco Systems Inc. - and a sign of how old relationships are being frayed by a flurry of maneuvers by technology ...

Recommended for you

Cheaper wireless plans cut into AT&T 2Q profit

1 hour ago

(AP)—AT&T posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

Android grabs more tablet market share

3 hours ago

Global sales of tablet computers edged higher in the second quarter, in the slowest growth since 2009, research firm Strategy Analytics said Wednesday.

Microsoft CEO sees 'bold' plan as 4Q tops Street

15 hours ago

(AP)—Microsoft Corp. CEO Satya Nadella painted an upbeat vision of the future Tuesday, saying that the next version of Windows will be unified across screens of all sizes and that two money-losing units—Nokia ...

Apple's fiscal 3Q earnings top analyst forecasts

Jul 22, 2014

Apple's growth prospects are looking brighter as anticipation builds for the upcoming release of the next iPhone, a model that is expected to cater to consumers yearning for a bigger screen.

User comments : 0