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
TheStreet Open House

Websense Surges On Acquisition Rumor

Stock quotes in this article: WBSN, HPQ

SAN DIEGO ( TheStreet) -- Shares of Websense (WBSN) surged Wednesday after the Wall Street Journal reported that the security specialist may be on the block.

Citing people familiar with the matter, the Journal said that Websense is exploring a sale with the help of investment bank Qatalyst Partners, which also worked on HP's (HPQ) acquisition of Palm and EMC's (EMC) purchase of Data Domain.

Websense could command a price tag of around $1 billion, according to the sources, who explained that the firm may decide against a sale if offers do not meet its expectations.

Websense shares climbed $2.42, or 11.85%, to close at $22.85 on Wednesday, reversing the broader retreat in tech stocks that saw the Nasdaq lose 1.89% over the session.

Rumors of Websense as an attractive acquisition target are not new, and a deal would continue the recent spate of security M&A that saw Intel (INTC) spend $7.7 billion on McAfee and HP grab ArcSight for $1.7 billion.

HP, which rolled out its long-term strategy earlier this week, has been touted as a possible WebSense suitor. The tech bellwether is expected to make more acquisitions in both software and security, particularly after HP CEO Leo Apotheker highlighted the security challenges of cloud computing during an event in San Francisco earlier this week.

Websense, which has a market cap of $928 million, sells software for securing Web, email, mobile and social networking data. The Symantec (SYMC) rival lists Microsoft (MSFT) as a partner.

Neither Websense nor Qatalyst has yet responded to TheStreet's request for comment on this story.

--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.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs