Trend Micro buys TippingPoint for $300m as HP divorce edges nearer

In its last move before its split in two, HP sells off its network security offering but insists security will remain part of its strategy

Security software firm Trend Micro has snapped up TippingPoint, an intrusion prevention systems provider, for approximately $300m.

The agreement includes the technology, intellectual property, expertise and customer base of TippingPoint and will see Trend Micro combine its network breach detection system with the intrusion prevention and response capabilities from TippingPoint - a combination that CEO Eva Chen said would provide "value for customers".

The two companies have been partners since 2014, and Trend Micro believes it will continue to be strong partners with its parent company, HP, post transaction. It said the firms will form a partnership around TippingPoint around re-sale, managed services and OEM activities, as well as security intelligence, app security and data security.

Meanwhile, for HP, selling TippingPoint is the last big play by the firm before it will formally be split in two on 1 November. The split will see the company separate its low-margin PC business, including home and office printers - once HP's most profitable line - as well as 3D printers, from its enterprise-focused rump.

In a blog post, the firm said it was "sharpening [its] focus on protecting the digital enterprise, investing in offerings that help customers protect users, applications and data and secure the interactions between them regardless of location or device".

With this in mind, it decided to divest TippingPoint to Trend Micro.

"TippingPoint has been an important component of our security offering but we have decided to partner in network security as opposed to own so we can invest in other areas of our security portfolio," the firm said.

"Make no mistake, security is at the heart of our strategy for the new Hewlett Packard Enterprise," it emphasised.

The firm has had to take action after a slump in revenues for several years, largely thanks to a decline in PC and printer sales. Its most recent quarterly results - in August - revealed a fourth consecutive decline quarter-by-quarter. In September, it was revealed by the Financial Times that the Silicon Valley giant would cut up to 30,000 jobs as part of the big split.