Hp to Acquire Aruba Networks for $2.7B

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Hp to Acquire Aruba Networks for $2.7B

 news 2015-03-03 at 11:07:03 am Views: 214
  • #42091

    Hp to Acquire Aruba Networks for $2.7B
    By Brett Molina

    Hewlett-Packard will acquire networking company Aruba Networks in a deal valued at $2.7 billion, the companies said Monday, as the personal computer maker continues to shift toward offering services for the enterprise market.

    HP will scoop up Aruba for $24.67 a share in cash, reads a joint statement. The deal is expected to close during the second half of HP's fiscal year.

    "By combining Aruba's world-class wireless mobility solutions with HP's leading switching portfolio, HP will offer the simplest, most secure networking solutions to help enterprises easily deploy next-generation mobile networks," HP's CEO Meg Whitman said in a release.

    Shares of HP climbed 0.83% in pre-market trading, while shares of Aruba Networks slipped 1.5%.

    Aruba Networks, based in Sunnyvale, California, specializes in wireless networking, notably in the mobile market. The company has 1,800 employees, and reported revenue of $729 million last fiscal year.

    HP's deal for Aruba Networks is the largest since its failed 2011 acquisition of software company Autonomy for $11 billion. The deal ended with an $8.8 billion write-down for HP and an inquiry by the Justice Department after HP accused Autonomy of accounting fraud.

    Whitman is leading a major transition for HP, which looks to move away from the weaker PC market toward more networking and enterprise options. In October, HP announced it would split its PC and printer business from hardware and service operations.