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September 13, 2010

HP Expands Security Portfolio with Acquisition of ArcSight

Continuing with its acquisition strategy, computer giant Hewlett-Packard (News - Alert) announced a new deal on Monday. To quickly expand its software and security portfolio, HP has inked a definitive agreement to acquire cybersecurity and compliance solutions provider ArcSight (News - Alert) Inc. Under this deal, HP is to pay  ArcSight shareholders $43.50 per share, which translates into an enterprise value of $1.5 billion.

According to HP, ArcSight’s superior technology is highly complementary to its existing security portfolio of hardware, software and services. The combination of HP and ArcSight will improve security, reduce risk and facilitate compliance at a lower cost for customers, said the partners.

Today’s successful enterprises must provide their employees, partners and customers with more access to applications, services and information. This access and connectivity exposes enterprises to escalating threats, increasing complexity and regulatory challenges. Together, HP and ArcSight will be well-positioned to secure even the most demanding environments by delivering broader visibility, deeper context and better continuity, said HP.

“From a security perspective, the perimeter of today’s enterprise is porous, putting enormous pressure on clients’ risk and compliance systems,” said Bill Veghte, executive vice president, Software and Solutions, HP, in a statement. He added, “The combination of HP and ArcSight will provide clients with the ability to fortify their applications, proactively monitor events and respond to threats.”

Similarly, commented Tom Reilly, president and chief executive officer, ArcSight, in the same release, “HP’s acquisition of ArcSight will enable the creation of a new type of security solution, one that serves the modern enterprise.” “By combining ArcSight’s Enterprise Threat and Risk Management Platform with HP’s breadth of application development and operations management solutions, HP will be able to offer an integrated security platform that delivers broader visibility, deeper context and faster remediation of enterprise-wide security and risk-related events. In a world where perimeter security is no longer enough, businesses need this holistic approach to securing their networks, applications and sensitive data,” noted Reilly.

The acquisition will be conducted by means of a cash tender offer for all of ArcSight’s outstanding shares of common stock. The closing of the acquisition, which is subject to customary closing conditions, is expected to occur by the end of the calendar year.


Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Stefania Viscusi
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