HP to buy ArcSight for $1.5 billion

A logo of HP is seen outside Hewlett-Packard Belgian headquarters in Diegem, near Brussels in this January 12, 2010 file photo. REUTERS/Thierry Roge

BANGALORE (Reuters) - Hewlett-Packard Co, the world’s top personal computer maker, said it agreed buy cybersecurity firm ArcSight Inc for $1.5 billion in cash.

The $43.50-a-share offer is a 24 percent premium to ArcSight’s Friday close.

The acquisition is expected to close by the end of the calendar year.

ArcSight’s shares closed at $35.10 on Friday on Nasdaq. The stock has gained about 24 percent in value since The Wall Street Journal reported that company had put itself up for sale on August 26.

Reporting by Sayantani Ghosh in Bangalore; Editing by Anne Pallivathuckal