HP Shares Surge After ArcSight Deal

Shares in Hewlett-Packard (HP) surged following the company's announcement to acquire ArcSight.

The stock value of HP at the end of trade on Tuesday saw price rise by $1.35 per share, or three per cent, to close as $39.63, Bloomberg's Business Week reports.

According Shaw Wu, an analyst at market research firm Kaufman Bros, HP's move to acquire the software vendor firm made "strategic sense".

"We frankly would like to see HP get more aggressive in software," Wu stated in a note to investors.

Earlier this week, HP announced plans to buy the Cupertino, California-based security software firm ArcSight for $1.5 billion, or $43.50 per share, in cash.

The deal is the second biggest under the interim chief executive officer Cathie Lesjak, who joined following the abrupt departure of former CEO Mark Hurd last month.

HP earlier won bidding battle with rival computer maker Dell to acquire cloud-based data storage technology provider 3Par for $2.07 billion.