HP all set to purchase ArcSight for $1.5 billion

HP all set to purchase ArcSight for $1.5 billionThe world’s top personal computer maker, Hewlett-Packard Co, recently announced that it will be purchasing security software firm ArcSight Inc for $1.5 billion in cash on Monday for further diversifying its computer business.

The offer of $43.50 a share is a 24 percent premium to ArcSight’s Friday close of $35.10 on Nasdaq.

From Timesofindia.indiatimes.com:

Shares were trading at $44.36 in heavy premarket trading on Monday, indicating that some shareholders are looking for a higher bid. The acquisition is expected to close by the end of the year and is HP’s second major deal since the departure of Mark Hurd as chief executive. Hurd, who left HP after he was accused of falsifying expense reports and concealing a relationship with a female contractor, is now a co-president at Oracle Corp. Earlier this month, HP won a bidding war against rival Dell Inc to buy data storage company 3PAR Inc for $2.4 billion.

This deal is seen by market experts as the latest sign of consolidation in the security software sector. Last year, McAfee Inc was purchased by Intel Corp for $7.7 billon while payment authentication unit of VeriSign Inc was purchased by Symantec Corp for about $1.3 billion.

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