HP and ArcSight Inc. announced yesterday that a definitive agreement for HP to purchase ArcSight, which is a leading security and compliance management company has been signed , for an enterprise value of $1.5 billion (over R10.7 billion).

 

According to HP the combination of the two companies will improve security, reduce risk and facilitate compliance at a lower cost for customers.

 

The acquisition will also result in other benefits for HP’s enterprise clients including broader visibility, providing them with a comprehensive view of all events across IT operations, security and compliance and deeper context, which is the ability to detect threats and risks by correlating both activity as well as state changes in real time. Better continuity will also be had, allowing for a constant feedback loop between build, manage and monitor to ensure that enterprises remain secure.

 

“HP’s acquisition of ArcSight will enable the creation of a new type of security solution, one that serves the modern enterprise,” said Tom Reilly, president and chief executive officer, ArcSight.

 

“By combining ArcSight’s Enterprise Threat and Risk Management Platform with HP’s breadth of application development and operations management solutions, HP will be able to offer an integrated security platform that delivers broader visibility, deeper context and faster remediation of enterprise-wide security and risk-related events. In a world where perimeter security is no longer enough, businesses need this holistic approach to securing their networks, applications and sensitive data.”

 

The acquisition will be conducted via a cash tender offer for all of ArcSight’s outstanding shares of common stock. The closing of the acquisition, which is subject to customary closing conditions, is expected to conclude at the end of the calendar year.

 

This purchase is the latest by HP following the acquisition of smartphone manufacturer Palm earlier in the year.