'Forbes' - HP likely to buy Check Point by year-end - Check Point has found it difficult to meet growth targets since its takeover of Sourcefire was thwarted

"Forbes" quotes Technology Business Research analyst Momin Khan as saying that he expects Hewlett-Packard Company (NYSE: HPQ) to make two or three more acquisitions over the course of 2007. In July, HP acquired Mercury Interactive Corp. (Pink Sheets:MERQ) for $4.5 billion. He said Check Point Software Technologies Ltd. (Nasdaq: CHKP) was a possible acquisition target.

The US Federal Trade Commission recently approved Hewlett Packard's acquisition of Mercury, and that most of the obstacles for closing the deal have been cleared, except for the publication of Mercury's financial reports.

Hewlett Packard's acquisition of Mercury is aimed at boosting the turnover of its software business to $3 billion by 2008. An acquisition of Check Point, which provides Internet security solutions, will help Hewlett Packard achieve its target.

Check Point has been having trouble achieving its long-term growth targets. Since the failure of its takeover of Sourcefire Inc., the company has been looking for growth engines to drive it forward and add value for shareholders. Check Point's share is now traded at $17.58, a level not seen since 2004. The company's results for the second quarter met analysts' forecasts, but are not enough to ensure the growth investors want.

Check Point posted $138.9 million revenue for the second quarter, 4 percent less than for the corresponding quarter of 2005. The market consensus was $140.2 million quarterly revenue.