Hewlett-Packard is nearing a deal to buy cybersecurity company ArcSight for about $1.5 billion, reports Reuters India.

ArcSight has been been shopping itself for the past few months and had been seeking around $42 per share. ArcSight shares closed at $35.10 on Friday.

The economic environment has been challenging for many companies and the deal it yet another sign of consolidation in the security software sector. Last month, Intel agreed to buy McAfee Inc for $7.7 billion. In May, Symantec bought Verisign‘s payment authentication unit for about $1.3 billion and Symantec itself is the subject of takeover rumors. Finally, HP won a bidding war against rival Dell to buy data storage company 3PAR for $2.4 billion.