HP to Acquire ArcSight

HP to Acquire ArcSight

Acquisition will expand HP's software and security portfolio and accelerate growth. Combination will provide customers the ability to proactively monitor real-time events, assess risks and respond quickly to threats.

PALO ALTO and CUPERTINO, Calif. – September 13, 2010 – HP and ArcSight, Inc. announced today that they have signed a definitive agreement for HP to acquire ArcSight, a leading security and compliance management company, for $43.50 per share, or an enterprise value of $1.5 billion.

The combination of HP and ArcSight will improve security, reduce risk and facilitate compliance at a lower cost for customers. ArcSight's superior technology is highly complementary with HP's existing security portfolio of hardware, software and services.

Today's successful enterprises must provide their employees, partners and customers with more access to applications, services and information. This access and connectivity exposes the enterprise to escalating threats, increasing complexity and regulatory challenges. Together, HP and ArcSight will be well-positioned to secure even the most demanding environments by delivering:

• Broader visibility: A comprehensive view of all events across IT operations, security and compliance
• Deeper context: The ability to detect threats and risks by correlating both activity and state changes in real-time
• Better continuity: A constant feedback loop between build, manage, and monitor to ensure that enterprises remain secure

“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.”

“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 & CEO, 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 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.