HP completes sales negotiations with software security firm
Hewlett Packard buys ArcSight in $1.5 billion deal
Hewlett Packard (HP) has completed sales negotiations with software security firm ArcSight.
The computer maker has agreed to purchase ArcSight, which develops software to monitor data flow and prevent fraud, for around $1.5 billion (£975 million).
The $43.50 per share offer represents a 24 per cent premium on the value of ArcSight shares on Friday's close.
Last month, HP acquired data storage business 3Par in a $2.1 billion (£1.3billion) deal, beating off competition from rival bidder Dell.
Bill Veghte, HP's executive vice president of software and solutions, claimed the firm would continue to make acquisitions which make "strategic operational and financial sense".
He said: "The combination of HP and ArcSight will provide clients with the ability to fortify their applications, proactively monitor events and respond to threats."
HP's aggressive policy of expansion was initially started by former chief executive Mark Hurd, who has now moved to rival company Oracle.