HP bids for ArcSight - Update
It seems that Hewlett-Packard (HP) plans to expand its range of security products. According to the Wall Street Journal HP has offered $1.5 billion (£0.97 billion) for the acquisition of security software maker ArcSight. The purchase may be officially announced today.
ArcSight makes software to, among other things, monitor corporate networks for the suspicious activities of potential intruders. The approximately 500 employees serve about 1,000 clients and company turnover in the previous quarter was $48 million.
At the close of business on Friday, ArcSight had a market value of $1.2 billion. ArcSight would be the second acquisition since the departure of former CEO Mark Hurd, that HP will pay a large premium for. In early September, HP prevailed against Dell in the bidding race for the storage specialists 3PAR.
Update - HP issued an official press release today confirming that a definitive agreement has been signed for HP to acquire ArcSight for $43.50 per share, or an enterprise value of $1.5 billion.