HP closes in on deal to buy tech firm ArcSight

HEWLETT-PACKARD (HP) is nearing a deal to buy cybersecurity company ArcSight for about $1.5bn (£976m), the latest in a series of technology sector transactions.

ArcSight drew interest from several large tech companies and had been seeking around $42 per share, according to a Wall Street Journal report, citing unnamed sources. A deal could be announced as soon as today.

A deal would be HP’s second major acquisition since the departure of Mark Hurd as chief executive, showing the technology giant remains aggressive in pursuing growth.

Hurd, who left HP after he was accused of falsifying expense reports and concealing a relationship with a female contractor, is now a co-president at Oracle.

Earlier this month, HP won a bidding war against rival Dell to buy data storage company 3PAR for $2.4bn.

The deal would also be the latest sign of consolidation in the security software sector. Last month, Intel agreed to buy McAfee for $7.7bn. In May, Symantec bought Verisign’s payment authentication unit for about $1.3bn.

HP declined to comment. ArcSight was not immediately available for comment.