Tags: arcsight, hewlett-packard, huge technology company, security, software maker
Hewlett-Packard Co. agreed to buy security-software maker ArcSight Inc. for about $1.5 billion, continuing the company’s spending spree that began after Chief Executive Mark Hurd resigned last month.
The deal also represents the latest purchase of a smaller security firm by a huge technology company, a trend some see continuing as big tech considers the importance of adding security to their product portfolio. ArcSight makes software that monitors corporate networks for unusual activity, such as a hacker’s attempt to break into a system.
ArcSight shares ended Monday trading up 25.1% at $43.91 on the Nasdaq, above H-P’s offer price of $43.50 a share, suggesting some traders may be expecting or hoping for a higher bid, similar to what happened with storage maker 3PAR Inc. last month. ArcSight, of Cupertino, Calif., had been quietly shopping itself to a handful of big technology companies, and the agreed-upon deal provides a 24% premium to ArcSight’s closing price Friday and a 70% premium to where it was trading a month ago.
On a conference call with investors, H-P executives declined to comment about the bidding process for ArcSight. They also wouldn’t speculate about what would have happened if Mr. Hurd remained CEO.
Hewlett-Packard says it has achieved a mobile-computing milestone by getting the HP EliteBook 6930p to operate continuously for 24 hours on a single battery charge. The laptop used in the test is, however, rather different from those consumers would pick up at the store, at least for now.
