As predicted earlier today, Hewlett-Packard has signed a definitive agreement with security software vendor ArcSight to acquire the company for $43.50 per share, representing an enterprise value of $1.5bn (£973m).
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Following its protracted bidding war with Dell over 3Par, this is the second acqusition HP has made since losing CEO Mark Hurd in August and effectively puts the boot into market talk that the company is rudderless in his absence.
It is also the second major security deal of recent weeks, suggesting a further ramp up of market consolidation in the sector.
In a statement released this lunchtime, HP and ArcSight said their combination would improve security, reduce risk and facilitate compliance at a lower cost for customers.
HP said ArcSight's "superior" technology was highly complementary to HP's existing security line-up, which includes the TippingPoint portfolio obtained through the acquisition of 3Com.
"HP will be able offer an integrated security platform that delivers broader visibility, deeper context and faster remediation of enterprise-wide security and risk-related events," said ArcSight president and CEO Tom Reilly.
He added: "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 is set to close by the end of the calendar year.