HP Announces Deal With ArcSight

Computer manufacturer Hewlett Packard has reportedly struck a deal with ArcSight, a company that specializes is software for system security.  It seems that this is a recent trend for HP, as they have been making other purchases following the the resignation of Mark Hud, one of the company’s former CE’s in August.

In addition to this being a trend for HP, the industry is showing this same behavior across the board, buying up smaller outfits that specialize in security applications.  It seems that being able to do security in house is becoming a goal for most major technology companies.  ArcSight specializes in providing software solutions to larger companies, keeping hackers out of their systems and alerting the IT staff when a possible intrusion has taken place.  HP is most likely planning to implement the resources they gain through the purchase of the company for their business customers.

After the announcement of the sale, prices of shares for ArcSight rose slightly, in anticipation of increased buying once the sale is complete.  This same behavior has been seen through other buy-outs in recent times, including the sale of storage company 3Par.

The sale is expected to complete by the end of the year and the incorporation of ArcSight is not expected to be complete until the beginning of 2011.

1 Comment on "HP Announces Deal With ArcSight"

  1. I’ve seen this kind of thing happening all over the IT world. Big companies are basically eating smaller ones, it’s hard for them to keep from getting bought out because of the way the economy is right now.

    Basically, it’s just a free for all, with the big boys getting the best of the small companies for way less that they would otherwise be worth.

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