rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » HP close to inking deal for ArcSight purchase

HP close to inking deal for ArcSight purchase

September 13, 2010 13:41 IST

HPTechnology giant Hewlett-Packard is nearing a deal to acquire security software-maker ArcSight Inc for about $1.5 billion, according to a media report.

A deal could be announced as early as Monday, The Wall Street Journal reported, citing people familiar with the matter.

The report cautioned that things were still fluid and could fall apart. According to the publication, the price per share that HP is willing to pay could not be learned, but ArcSight was asking for about $42 a share.

The ArcSight deal would be the second time that HP has agreed to pay a big premium for a smaller company since chief executive Mark Hurd resigned on August 6.

Most recently, the company was engaged in a bidding war with rival Dell over storage technology firm 3PAR Inc, eventually winning it with a bid of $2.35 billion, which translated into almost double the $18 a share price that Dell was initially willing to pay.

Last month, HP also announced the acquisition of closely held software-makers Fortify Software and Stratavia.

The ArcSight deal would continue HP's push into software and other areas outside of its core computer hardware business.

ArcSight makes software that monitors corporate networks for unusual activity, such as hackers' attempts to break into a system.

Its products are used by more than 1,000 customers to help prevent cyber attacks and to spot potential policy violations.

ArcSight, which went public in 2008, reported a revenue of $181.4 million for the financial year ended April 30, up 33 per cent compared to the previous year.

Profit for the fiscal grew to $28.4 million from $9.9 million in the year before.

© Copyright 2013 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.