On Monday, September 13, 2010, Hewlett-Packard Co., announced that it will pay $1.5 billion dollars for security software company Arcsight, Inc. The $43.50 per share in cash offer represents a 24 percent premium to Arcsight’s closing price on Friday, September 10, 2010. The $1.5 billion dollars H-P has offered is 6.6 times higher than Arcsight’s expected 2011 fiscal revenue. According to Reuters, "ArcSight’s software helps companies protect their digital assets from cyber-attacks and fraud, and aids in regulatory compliance." The acquisition highlights the emerging industry of data security, and more broadly data governance. Many other service providers like Oracle, IBM, and Cisco Systems, are said to be interested in gaining a foothold in this technology. However, the technology related to data security is only as good as the enforcement mechanisms which enterprises employ. There also needs to be a strong focus in people and processes.
