HP revealed today that it has signed a definitive agreement to acquire security and compliance management company ArcSight for an enterprise value of US$1.5bn, or US$43.50 per share.
The acquisition, it seems, is being spurred on by the continuing consumerisation of IT with workers choosing which technologies best suit their workstyles. This, it said, puts enterprises under pressure to provide their employees, partners and customers with more access to applications, services and information.
This access and connectivity exposes enterprises to escalating threats, increasing complexity and regulatory challenges.
“From a security perspective, the perimeter of today’s enterprise is porous, putting enormous pressure on clients’ risk and compliance systems,” said Bill Veghte, executive vice-president, Software and Solutions, HP.
“The combination of HP and ArcSight will provide clients with the ability to fortify their applications, proactively monitor events and respond to threats,” Vechte said.
The acquisition will be conducted by means of 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 occur by the end of the calendar year.
“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,” Reilly added.