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: Google hits back at rivals with futuristic HQ plan

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

Japan's NTT to buy German data centre operator

1 hour ago

Japanese telecom giant NTT Communications is looking to acquire German data centre operator e-shelter, as it seeks to cash in on growing demand in Europe, a newspaper reported Saturday.

Google hits back at rivals with futuristic HQ plan

Feb 27, 2015

Google unveiled plans Friday for a new campus headquarters integrating wildlife and sweeping waterways, aiming to make a big statement in Silicon Valley—which is already seeing ambitious projects from Apple ...

Ericsson sues Apple over patent violations

Feb 27, 2015

Swedish telecoms group Ericsson announced Friday a lawsuit against Apple claiming that the US tech giant continued to use its technology in iPhones and other wireless devices after refusing to renew a licencing ...

Stock market shrugs off net neutrality vote

Feb 27, 2015

(AP)—The stock market largely shrugged off the Federal Communications Commission's vote to impose tougher rules on broadband providers like Comcast, Verizon and AT&T to prevent them from creating paid fast lanes for the ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.