HP to purchase Jetadmin, a cloud software product that can run on server or network, for $1.3 billion.
The acquisition is expected to close in the fourth quarter, according to people familiar with the matter.
The deal comes at a critical time for HP, which has been struggling to attract more business and customers to its cloud and other software business.
HP was hit hard by the 2010 financial crisis and a series of security lapses and has been searching for ways to boost its cash flow.
It was not immediately clear how much Jetadmin would help HP in its quest to bolster its cloud business.
The deal is expected be in the range of $3 billion, the people said.
Jetadmin was developed by HP to allow cloud-based users to manage and manage their software installations, and it also helps businesses manage their cloud deployments.
The software can be used for both business and personal use, and customers can install it on their own servers or to run on a corporate network.