This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

M&A Talk Still Swirling Around ArcSight

Story updated with additional information on rumored ArcSight meeting with employees.

CUPERTINO, Calif. ( TheStreet) -- Acquisition rumors continued to swirl around ArcSight (ARST) on Thursday, a week after a news report first surfaced saying the company is on the auction block.

An industry source told TheStreet that the company is holding an "all-hands-on-deck" meeting with employees today, prompting speculation that this could be related to potential M&A. Subequently, the source added that the meeting may now be pushed out until Friday. ArcSight, which reports its first-quarter results after market close, has yet to respond to TheStreet's request for comment.

Word on the Street

Last week the Wall Street Journal reported that ArcSight has put itself in the shop window. Citing people familiar with the matter, the Journal said that potential buyers, including Oracle (ORCL - Get Report) and Hewlett-Packard (HPQ - Get Report) could pay up to $1.5 billion for the company. EMC (EMC - Get Report), IBM (IBM - Get Report) and CA (CA - Get Report) are also possible purchasers, the Journal added.

ArcSight shares surged on the speculation, hitting a new 52-week high of $39.74 on August 27. The WSJ report, which theorized a deal could happen in the next couple of weeks, said ArcSight expects to fetch $40 a share.

One of TheStreet.com's top security stocks for 2010 ArcSight makes security management and compliance software, and was recently cited as one of the sector's most attractive acquisition targets. The TheStreet's 'Breakout Stocks' portfolio has described ArcSight as "one of the most compelling secular growth stories in the market."

ARC Sight

ArcSight only went public in 2008, but has already made a big name for itself, putting out consistently impressive quarterly numbers.

The company's CEO Tom Reilly recently told TheStreet that ArcSight is also on track to reach its target of 18% to 20% operating margin in fiscal 2012.

The software maker has been getting plenty of love on Wall Street and analysts expect the company to post first-quarter revenue of $45.53 million and earnings of 13 cents a share. ArcSight reported sales of $34.6 million and earnings of 9 cents a share in the same period last year.

ArcSight's stock rose 64 cents, or 1.69%, to $38.47 in Thursday afternoon trading, outpacing the broader advance in tech stocks that saw the Nasdaq rise 0.45%.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CA $30.75 0.00%
EMC $26.29 0.00%
IBM $170.13 0.00%
HPQ $33.38 0.00%
ORCL $43.33 0.00%

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs