Hewlett-Packard will reportedly buy security software company ArcSight for $1.5 billion.
According to the Wall Street Journal, HP will pay a decent premium for ArcSight, but nothing 3Par-like. ArcSight's market cap was $1.2 billion at market close Friday.
In some respects, HP is playing catch-up when it comes to security software. IBM took ISS off the market and also bought Guardium, which is similar to ArcSight. EMC owns RSA. And Intel is in the process of buying McAfee.
ArcSight's software monitors corporate networks. The company has a series of products ranging from compliance dashboards to cyberthreat detection to monitoring. As for the financials, ArcSight reported net income of $20.9 million on revenue of $181.4 million for the fiscal year ending April 30. For fiscal 2011, ArcSight is expected to report net income of $29.4 million on revenue of $226.2 million, according to analysts.