HP Continues Shopping Spree; Buys Security Software Company Arcsight For $1.5B In Cash

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As rumored yesterday, HP has signed an agreement to buy security software company Arcsight for $1.5 billion, or $43.50 per share. This acquisition follows HP’s $2.3 billion acquisition of data storage company 3PAR.

Arcsight provides security and compliance management software that identifies and mitigate business risk for enterprises, MSSPs and government agencies. The software products are designed to protect enterprises from external security attacks, insider threats and compliance breaches.

HP’s says that the acquisition of ArcSight “will enable the creation of a new type of security solution, one that serves the modern enterprise.” The acquisition is expected to close by the end of 2010.

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