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Hewlett-Packard Buying ArcSight for $1.5 Billion

Hewlett-Packard says it has agreed to buy the security software provider ArcSight for about $1.5 billion.

Hewlett Packard
Hewlett Packard

It's one of a string of recent dealsthat has taken Hewlett-Packard beyond the personal computer market as HP looks to diversify its business and increase revenue.

ArcSight, based in Cupertino, Calif., helps organizations keep tabs on the data flowing through their computer networks and analyze it for signs of hacking, theft or fraud.

On Monday, HP said it would offer ArcSight stockholders $43.50 per share in cash. That's a 24 percent premium over the ArcSight's closing share price Friday. It's a 54 percent premium over ArcSight's last closing share price before news of a potential deal leaked.

ArcSight shares were halted in pre-market trading, while HP shares were higher.