Hewlett-Packard Co. is nearing a deal to acquire security-software maker ArcSight Inc. for around $1.5 billion, people familiar with the matter said.
ArcSight's market capitalization was $1.2 billion, or $35.10 a share, in 4 p.m. trading on the Nasdaq Stock Exchange Friday. ArcSight had been seeking around $42 a share, people familiar with the matter said, but the exact price per share H-P is willing to pay couldn't be learned.
A deal could be announced as early as Monday.
A spokeswoman for H-P declined to comment. A spokesman for ArcSight didn't immediately respond to a request for comment.
This is the second time that H-P has agreed to pay a big premium for a small technology company since its chief executive, Mark Hurd, resigned in August. Earlier this month, H-P said it would pay $2.35 billion for storage maker 3PAR Inc. after getting into a bidding war with rival Dell Inc.
ArcSight, of Cupertino, Calif., had been quietly shopping itself to a handful of big technology companies. It makes software that monitors corporate networks for unusual activity, such as a hacker's attempt to break into a system. ArcSight attracted interest from a number of large tech companies, and bidding quickly surpassed $40 a share, people familiar with the matter said.
ArcSight, which went public in 2008, reported revenue of $181.4 million in the fiscal year ended April 30, up 33% from the year before. Income for the fiscal year grew to $28.4 million from $9.9 million a year earlier.