HP's Acquisition Binge Continues With ArcSight Deal
Ravi Nagarajan submits:Hewlett-Packard’s (HPQ) Board of Directors has yet to name a permanent CEO to replace Mark Hurd but is set to seal the deal on the company’s second major acquisition in less than one month. According to a press release issued this morning, HP will acquire ArcSight for $43.50 in cash in a $1.5 billion deal. The transaction is expected to close by year end. The ArcSight transaction follows HP’s victory in a bidding war for 3Par earlier this month. In a critical article in late August, we noted that HP’s Board appeared to believe there were “no constraints” in its bid for 3Par. At the end of the battle, HP agreed to pay $2.4 billion for a company that posted sales of only $194 million in its latest fiscal year and has yet to exhibit any signs of consistent profitability. By any measure, HP paid a very rich price for 3Par.Complete Story » seekingalpha.com |
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