HP Looks To Sell TippingPoint Security Division

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Sources say TippingPoint could be valued at $200 to $300 million

Hewlett-Packard is reportedly mulling over a sale of its TippingPoint network security division as the company steams towards its planned split later this year.

Reuters reported that a number of private equity firms have shown interest in TippingPoint, according to sources who declined to be identified.

The sources said the division could be valued at between $200 million (£131m) and $300 million (£197m).

Split preparation

HP CEO Meg Whitman and a horse

In November, HP will undergo a corporate split into two entities. The move will see HP Inc look after the firm’s PC and printing businesses, while Hewlett-Packard Enterprise will focus on corporate hardware services, encompassing the firm’s storage, server and networking units as well as its cloud infrastructure and services unit.

TippingPoint offers an intrusion prevention system that deals with IT threat protection. The company was acquired by 3Com Corporation in 2005 for $430 million (£282m). In 2010, HP acquired 3Com for $2.7 billion (£1.8bn).

HP has declined to comment on the matter, but told TechWeekEurope it wanted to “underline its commitment on the security market”.

In August, HP reported concerning losses across most of its business groups as the global demand for PCs continues to fall.

Revenue slipped 8.1 percent in its Q2 results this week, falling to $25.35 billion (£16.5bn), with the firm’s PC and printer business down 11.5 percent.

Net income for the three month to July 31 fell £544 million, down from £628 million the same time last year.

In May. Hewlett-Packard confirmed the sell of a majority stake of its Chinese hardware business to a Tsinghua Holdings subsidiary for $2.3 billion (£1.5bn).

Unisplendour will acquire 51 percent of HP’s H3C Technologies, valuing the total business at $4.5 billion (£2.9bn). The new H3C will be providing servers, storage and networking hardware in China.

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