HP Sets Sights on Next Purchase

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    NEWSLETTERS

    TK
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    Computer builder Hewlett-Packard, located in Palo Alto, was started by William Hewlett and David Packard, both Stanford graduates.

     Computer maker Hewlett-Packard Co. may be close to another major acquisition.
         

    The company is nearing a deal to buy security software provider ArcSight for about $1.5 billion, The Wall Street Journal said on its website Sunday. Based on ArcSight's 34.6 million shares outstanding at Sept. 1, that would value the company at about $43.34 per share -- a 23 percent premium to the stock's closing price Friday.      
    The news comes just a few weeks after HP successfully wrestled data storage company 3Par Inc. from rival Dell Inc. for $2.07 billion. That $33-per-share deal valued 3Par at more than three times its share value prior to the bidding war.
         
    HP has been expanding beyond selling personal computers and printer ink for years. ArcSight Inc., based in Cupertino, Calif., provides technology for protecting business and government computer networks from hackers.
         
    Calls to HP and ArcSight seeking comment on a potential buyout were not immediately returned Sunday.