HP will buy Aruba to bolster its wireless networking business

The $2.7 billion deal will allow HP to take advantage of businesses with increasingly mobile employees

Hewlett-Packard will purchase Aruba Networks to boost its wireless networking business, the companies have announced.

HP will offer $US24.67 per share, giving Aruba a $US3 billion value. The deal is worth $US2.7 billion taking into account Aruba's debt and cash.

By buying Aruba, HP will be able to help businesses beef up their wireless networks to meet the demands of an increasingly mobile workforce, the companies said.

This is HP's first major acquisition since CEO Meg Whitman announced last year that the company would split into two. One half will focus on enterprise products and the other well sell printers and PCs.

Whitman recently said that HP can make acquisitions despite the company's troubled finances. Last week HP lowered its financial outlook for fiscal 2015 after reporting that revenue and profit decreased in the first quarter. During that quarter, HP's networking sales fell 11 per cent, compared to the year-ago period.

Aruba's sales, by contrast, are increasing. The company's 2014 revenue totalled $US729 million and was on track to break $US1 billion by 2017, according to analysts. Rumours of the deal emerged last week.

The networking gear vendor will join the HP Enterprise group, with Aruba CEO, Dominic Orr, and CTO, Keerti Melkote, staying on to lead the new organisation.

The boards of both companies have approved the deal, which is expected to close in the second half of HP's fiscal year. US government regulators and Aruba shareholders must also clear the acquisition.

Fred O'Connor writes about IT careers and health IT for The IDG News Service. Follow Fred on Twitter at @fredjoconnor. Fred's e-mail address is fred_o'connor@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Mergers and acquisitionsbusiness issuesNetworkingHewlett-PackardAruba networks

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Fred O'Connor

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?