US computer maker Hewlett-Packard last night announced a $4.5 billion cash deal to buy business software maker Mercury Interactive.
Provided the acquisition clears regulatory hurdles as expected, the deal should be completed by the end of the year, said Hewlett-Packard vice president Thomas Hogan.
Hewlett-Packard planned no changes at Mercury until early next year to avoid disruption during the critical fourth quarter and year-end shopping season, he added.
Buying Mercury is expected to increase Hewlett-Packard's software business revenues to more than $2 billion a year. HP predicted that the acquisition would increase revenues by 10-15% in fiscal year 2008.
