HP 'nearing deal to buy ArcSight'

Hewlett-Packard (HP) is close to agreeing a $1.5 billion (£970 million) deal to buy security software-maker ArcSight, continuing its push into the software market.

The report said the companies could announce a deal by Monday, but added that final decision has not yet been taken.

ArcSight is seeking around $42 (£27) per share, while HP's bidding price has not been confirmed, according to The Wall Street Journal.

If the deal materialises, it would be the second small company to be purchased by HP for a higher premium, since its chief executive Mark Hurd's resignation last month.

The company had recently bought storage technology firm 3PAR Inc for $2.35 billion (£1.5 billion), paying nearly double the price offered by rival Dell.

HP had also announced the purchase of software makers Fortify Software and Stratavia in August.

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