HP Close To Inking $1.5 Billion Deal For ArcSight

Hewlett-Packard (HP) is said to be close to acquiring security software vendor ArcSight.

According to the Wall Street Journal, a source has revealed that HP is close to finally acquiring ArcSight for a fee of $1.46 billion, valuing the company at $43.34 per share, 23 per cent higher than the stock's closing price on Friday.

The deal is expected to be announced early this week, however, the anonymous source has cautioned that it may still fall apart.

ArcSight offers security technology that enables companies to regulate and check their computer network and servers for any malicious activity.

Rumours of a potential takeover have been doing the rounds over the past few weeks, with Oracle, HP, EMC and IBM being touted as possible buyers.

ArcSight, if acquired, will be the second deal made by HP since the appointment of Cathie Lesjak as an interim chief executive officer.

HP has previously outbid rival computer maker Dell to acquire 3Par for $2.07 billion, or $33 per share, news agency the Associated Press reports.