HP Going for a New Transaction: An Insider

An insider confirmed the information provided by Wall Street Journal regarding HP’s next move. This insider, who preferred to keep his identity concealed, stated that Hewlett-Packard (HP) would announce the start of the negotiations over a new software transaction, by Monday, this time for ArcSight.

HP Corporation, one of the leading information technology Companies in the world, is planning to take acquisition of ArcSight Incorporation, a manufacturer of security software; with the initial price for the deal being around $1.5 billion.

With ArcSight having a $1.21 billion market value,

Experts believe that HP started planning the deal subsequent to Intel Corporation taking control over McAfee Incorporation, in August, for a $7.68 billion deal. McAfee is a provider of antivirus and antimalware software for computers.

However, for Albert King, the Chief Investment Officer at Prophet Capital Incorporation, it is not about Intel, it is about Dell. He said that HP apparently has “plenty of cash”, and would like to buy before Dell does. He added, “HP wants to put their cash to work, because they may think their existing business may not provide similar growth momentum in the future”.