HP to acquire Aruba Networks for $3 billion
03 March 2015 |
Hewlett-Packard has agreed to acquire Aruba Networks for approximately $3 billion as it seeks to boost its networking and enterprise businesses.
HP will acquire the networking company for $24.67 a share in cash, according to a joint statement. Aruba's CEO Dominic Orr and chief strategy and technology officer Keerti Melkote will head up the networking unit.
"Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT,” said HP’s CEO Meg Whitman. “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."
The acquisition of Aruba is HP’s largest since its $11 billion purchase of UK software company Autonomy in 2011 in which it was forced to write off $8.8 billion a year later.
Aruba posted revenue of $729 million in sales in the 2014 financial year and has reported annual revenue growth of 30% over the last five years.
The transaction is expected to close in the second half of HP’s 2015 fiscal year.