HP Buys Aruba Networks for $3B

In March of 2015, Hewlett-Packard announced its acquisition of Wi-Fi equipment manufacturer Aruba Networks in a deal worth approximately USD$3 billion. The purchase is HP’s largest transaction since the company’s major restructuring into two separate personal-computer/printer and technology services businesses in 2014. Under the deal, HP will pay $24.67 per share (approximately 34% over Aruba’s current price). With the acquisition, the company hopes to bolster its presence in the networking market – products such as smartphones, tablets, connectivity, etc.The past few weeks have seen a number of notable merger and acquisition announcements in the technology sector. This same week, NXP Semiconductors announced that it will acquire Freescale Semiconductor for USD$11.8 billion.

Last week, Avago Technologies revealed it will purchase Emulex for USD$606 million.Aruba Networks, founded in 2002 in Sunnyvale, California, specializes in wireless networking access point hardware and software for large commercial enterprises such as hotels, hospitals, corporations, shopping malls, and universities. The company also offers mesh routers, remote access points, mobility access switches, mobility controllers, antennas, as well as software products including a name brand operating system – ArubaOS – which is utilized on all their access points and mobility controller offerings. Aruba will retain its name and operate as a subsidiary of HP’s Networking business, a division of the HP Enterprise Group. Aruba Networks will keep its current CEO – Dominic Orr – and chief technology officer – Keerti Melkote – at the helm. According to the press release by HP, the merger will create an integrated enterprise networking entity, combining Aruba’s expertise in mobility software and WLAN hardware and Hewlett-Packard’s experience in wired switching products. The purchase is expected to finalize in the second half of fiscal year 2015.

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