Hewlett-Packard (NYSE: HPQ) will buy ArcSight (NASDAQ: ARST) for $1. 5 billion, according to several media sources. It is the second deal that HP has made this month. It took 3Par (NYSE: PAR) out of the hands of Dell Computer (NASAQ: DELL) last week.
The ArcSight transaction would value the company at about$43.25. The stock closed at $35.10 of Friday and fell over 1% during the day—a sign that no investors had inside information and decided to use it to “front run” the deal. ArcSight provides compliance and security management solutions to protect enterprises and government agencies.
The company had revenue of $48 million in the quarter that ended July 31, and net income of $3 million. Those numbers were above Wall St. forecasts.
Douglas A. McIntyre
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