HP Scoops Up ArcSight for $1.5 B

NEW YORK, ( TheStreet) - Hewlett-Packard ( HPQ) continued its acquisition spree with a $1.5 billion proposed buyout of network security shop ArcSight ( ARST) Monday.

Just 11 days after HP won a bidding war against Dell ( DELL) for storage specialist 3Par ( PAR) for $2.06 billion, the computer giant makes another deal to further expand its business beyond PCs.

ArcSight shares had been trading at 52-week highs this month as merger speculation heated interest in the company, which recently put itself on the sales block.

HP says it will pay $43.50 in cash for all of the outstanding shares of ArcSight and expects the deal to close by year-end.

ArcSight shares jumped $8.58, or 24%, To $43.68 in premarket trading Monday.

--Written by Scott Moritz in New York.

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