HP plans to buy Peregrine for US$425 million in cash

NEW YORK (Reuters) - Hewlett-Packard said on Monday it agreed to buy Peregrine Systems for US$425 million in cash to build its portfolio of computer systems management software.

HP also said, separately, that it agreed to buy privately held AppIQ, a maker of storage area network management software that helps large business customers manage computer servers and storage. Financial terms weren't disclosed.

"These relatively small acquisitions are in line with (HP's) recent printer-oriented purchase of Scitex Vision, which expanded (HP's) technology and product set but did not change the company's focus," wrote Shannon Cross of Cross Research in a note to clients.

The Peregrine deal is expected to close in the first calendar quarter of 2006, pending approval by Peregrine shareholders and other customary closing conditions.

HP, the number two computer maker, will acquire Peregrine, of San Diego, California, for US$26.08 per share.

Upon completion of the acquisition, Peregrine and its leading IT asset and service management software portfolio, will be integrated into HP's OpenView software business unit.