HP to Acquire Aruba Networks

Positions HP to Accelerate Enterprise Transition to Converged Campus Network.

Deal Combines Aruba Networks’ Leadership in Wireless Mobility solutions with HP’s Strength in Wired Switching

HP (NYSE: HPQ) and Aruba Networks (NASDAQ: ARUN) today reported an authoritative assention for HP to gain Aruba, a main supplier of cutting edge system access answers for the versatile endeavor, for $24.67 every offer in cash. The value estimation of the exchange is give or take $3.0 billion, and net of money and obligation roughly $2.7 billion. Both organizations’ sheets of executives have affirmed the arrangement.

Aruba is a Sunnyvale-based industry pioneer in remote systems administration with pretty nearly 1,800 workers. The organization had incomes of $729 million in monetary 2014, and has reported compound yearly income development of 30 percent in the course of the most recent five years.

Aruba boasts a profoundly respected advancement motor and particular deals, advertising and channel model, supplementing HP’s driving systems administration business and go-to-market broadness. Together, HP and Aruba will convey cutting edge united grounds arrangements, utilizing the solid Aruba brand. This new consolidated association will be driven by Aruba’s Chief Executive Officer Dominic Orr, and Chief Strategy and Technology Officer, Keerti Melkote, answering to Antonio Neri, pioneer of HP Enterprise Group. With this move, HP will be remarkably situated to convey both the development and worldwide conveyance and administrations offerings to address client issues around the world.

HP to Acquire Aruba Networks

HP to Acquire Aruba Networks

  

With the shift to mobile, enterprise networking needs are exceeding the capabilities of legacy infrastructure. At the same time, organizations are shifting rapidly to mobility-centric workplaces for their employees, guests, customers and students. The next-generation 802.11ac Wi-Fi standard is critical in enabling this trend. This new technology will support the faster speeds and access to cloud applications that end-users expect. Enterprises need comprehensive, integrated and secure networking solutions to help them transition legacy systems to the wireless edge. Today’s announcement directly addresses these market trends.

 Chairman, President and Chief Executive Officer of HP.

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.

Aruba's Chief Executive Officer

Together with HP, we have a tremendous opportunity to become an even greater force in enterprise mobility and networking, his 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.

Dominic Orr, Aruba's Chief Executive Officer

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. Overall, HP expects the acquisition to be accretive to earnings in the first full year following close.

https://twitter.com/HewlettPackBlog/status/574272326134423553

The transaction is expected to close in the second half of HP’s fiscal year 2015, subject to Aruba stockholder approval, regulatory approvals in the US and other countries as well as other customary closing conditions.

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