HP Keeps Dealing, Buys ArcSight for $1.5B

NEW YORK (CNNMoney.com) - Hewlett-Packard is Said Monday That it has Signed an Agreement to Buy ArcSight, Inc., a security software company, for $ 1.5 Billion. 

HP Said That the Purchase, at $ 43.50 per share, will including allow the world's largest technology company to "Improve security" and "Reduce risk ... at a lower cost for customers based on." 

ArcSight's (ARST) stock surged 26% on the opening bell, while HP (HPQ, Fortune 500) notched up Slightly. 

HP Said That the deal is Expected to Be Finalized by the end of the year. 

This is the second company That HP has Purchased this month. On Sept. 2, the company announced it had Concluded That ITS bidding war with Del (DELL, Fortune 500) for l storage company 3PAR (PAR). HP ultimately agreed Thurs 3PAR buy for $ 33 a share, or $ 2.35 Billion. 

Also HP announced a deal in mid-August Thurs Purchase privately Held Software Firm Fortify. 

Meanwhile, HP is still searching for a permanent chief executive officer and recently Filed suit against former ITS CEO, Mark Hurd, for joining Oracle (ORCL, Fortune 500) as co-presidents. 

Hurd left HP in early August amidst allegations they submitted false That expense, and reports with the intent of concealing a personal relationship with a Contractor Ken had also Life Style Filed a sexual harassment Claim against him. 

HP's Recent slew of deals have some speculating That the company is Being aggressive investors Thurs Thurs Prove That it's not a rudderless ship without Hurd at the helm. Analysts Say That Might Be an added bonus of HP's dealmaking, it's vain Probably Not the primary driver. 

"HP had a pipe line, and the deals That They have made were possibly ones That Proposed Hurd had," said Carl Howe, analyst at Yankee Group. "It's just going ahead with the ITS business. A company can not complete acquisitions over just a few weeks." 

The companies That Purchased HP has since Hurd's resignation are the kinds of turbid Businesses That it was buying During Hurd's tenure. HP has Been snapping up storage, security, networking and software companies in an effort Thurs ITS expand beyond core hardware business. 

But the deal That Drew the most Skepticism was HP's Drawn-out battle for 3PAR. Though the acquisition made sense Strategic, the price HP paid for it was believed to Be Higher Than much the cost-cutting Hurd Offered'd not have. 

"With 3PAR, You Can make the case That it was important for HP to win on Hurd's departure," said Ron Gruia, principal consultant at Frost & Sullivan. "But with ArcSight, it's clearly what should be a long-term play." 

If HP is Trying Thurs instill confidence in the ITS investors by buying up companies, the StrategyPoints hasn't Worked: HP's stock is down 17.5% since Hurd resigned.