TMCnet News
HP said to be near deal for Cupertino-based ArcSight [San Jose Mercury News, Calif.](San Jose Mercury News (CA) Via Acquire Media NewsEdge) Sept. 12--Showing no signs of slowing its recent spending spree, Hewlett-Packard may be close to announcing a deal to buy the security software-maker ArcSight for $1.5 billion. HP has been negotiating with the tiny Cupertino company since it put itself up for sale last month, according to a report by The Wall Street Journal, which said a deal could be announced this week. The newspaper cited unnamed people familiar with the matter. ArcSight, which was founded in part with an investment from the CIA venture capital fund In-Q-Tel, makes software that detects intrusion attempts on big computer networks. Its software is currently used by government agencies as well as financial and health care companies, and demand for its products is expected to grow as more businesses store vital data online. The company's technology could help HP beef up its portfolio of software for big computer systems, as it increasingly tries to sell a full range of hardware, software and tech services. While HP is a leading seller of commercial computer hardware, it lags behind such rivals as IBM and Oracle in some segments of the software business. An HP spokeswoman declined to comment Sunday. ArcSight representatives did not respond to messages. If the deal goes through, it would represent another in a series of big acquisitions that HP has negotiated in recent months. Last month, HP announced it had acquired another security software company, Fortify, for an undisclosed amount. HP also agreed to buy Fremont data-storage company 3Par for $2.4 billion after a hard-fought bidding war with Dell. Earlier this year, the Palo Alto tech giant closed separate deals to buy computer networking company 3Com for $2.7 billion and smartphone maker Palm for $1.2 billion. HP has continued to pursue deals even after the Aug. 6 resignation of its CEO, Mark Hurd, in a scandal over his relationship with a part-time marketing contractor. ArcSight, which went public in a 2008 IPO, reported $28 million in profit on $181 million in sales last year. The company has been quietly seeking a buyer in recent weeks, according to the Journal, which said ArcSight had also contacted some of HP's rivals, including Oracle and IBM. Reports of a possible sale appear to be driving up ArcSight's stock. Shares were trading below $30 for most of the past year, but the price has shot up in recent weeks. The price was $35.10 when the market closed Friday, giving ArcSight a total stock value of $1.2 billion. Contact Brandon Bailey at 408-920-5022. Follow him at Twitter.com/BrandonBailey To see more of the San Jose Mercury News, or to subscribe to the newspaper, go to http://www.mercurynews.com. Copyright (c) 2010, San Jose Mercury News, Calif. Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail [email protected], or call 866-280-5210 (outside the United States, call +1 312-222-4544) |