HP has reached an agreement to aquire Aruba, a leading provider of next-generation network access solutions for the mobile enterprise, in a deal valued at $2.7 billion, that is expected to accelerate HP's proposition to converged campus network. HP will scoop up Aruba for $24.67 a share in cash, reads a joint statement.
Sunnyvale-based Aruba is an industry leader in wireless networking with approximately 1,800 employees. The company had revenues of $729 million last year, and has reported compound annual revenue growth of 30 percent over the last five years.
This new combined organization will be led by Aruba's Chief Executive Officer Dominic Orr, and Chief Strategy and Technology Officer, Keerti Melkote, reporting to Antonio Neri, leader of HP Enterprise Group. HP and Aruba believe that by combining complementary product portfolios and go-to-market approaches, they will be able to accelerate revenue growth and strengthen the financial performance of the combined HP Networking business, and create a leading competitor in the $18 billion and growing campus networking sector.
Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT. 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.
Dominic Orr, CEO, Aruba Networks
Together with HP, we have a tremendous opportunity to become an even greater force in enterprise mobility and networking. This transaction brings together Aruba's best-of-breed mobility hardware and software solutions with HP's leading switching portfolio. In addition, Aruba's channel partners will have the opportunity to expand their businesses with HP offerings. Together, we will build on Aruba's proven 'customer first, customer last' culture, creating an innovative, agile networking leader ideally positioned to solve our customers' most pressing mobility, security and networking challenges.
