HP doles out plan to buy ArcSight for $1.5 billion
Most people have never heard of a tech security company called ArcSight, but HP wants to buy it for a pretty nice-size price tag of $1.5 billion.
The price would represent a purchase of $43.50 per share. ArcSight closed higher than that yesterday at $43.81. That's pretty striking considering HP just bought another company, 3Par, for nearly twice what its previous trading value had been.
ArcSight describes its services as "security and compliance solutions [that] enable businesses and government agencies to reduce risk and increase visibility across their IT infrastructure."
HP has become the latest company to enter the "Buy! Buy! Buy!" mindset. After its successful acquisition of Palm earlier this year, HP has been on a buying spree that's added HyperSpace, Melodeo, Stratavia, and 3Par. That's just in the last two months. It's an acquisition mindset that only Google can rival.
The recent acquisitions span all sides of the technology sector including mobile platforms, enterprise software, database solutions, and online music. The company has been looking to expand and re-focus itself since embattled CEO Mark Hurd was forced to step down.
HP's offer to buy ArcSight at a lower price than the company's current market value suggests it might be expecting a bidding war for the property, and it wants to start low. ArcSight has not agreed to any buyout terms.