HP in Talks to Buy Aruba Networks
The tech giant is looking to bolster its networking capabilities by acquiring Aruba, which sells wireless networking infrastructure products.Hewlett-Packard reportedly is looking to boost its networking business by acquiring wireless networking vendor Aruba Networks. Citing people with knowledge of the matter, Bloomberg reported that the two companies are in talks about a possible acquisition, though nothing has been finalized and a deal could collapse. One unnamed source said the a deal could be announced as early as next week. Aruba's annual user conference, Atmosphere 2015, is being held in Las Vegas next week. Arauba spokesman Pavel Radda declined to comment on the HP report when contacted by eWEEK. An HP spokesperson would not comment when contacted by Bloomberg. The report of a possible acquisition comes during a time of transition for HP, which is deep into a five-year turnaround program under CEO Meg Whitman that has included cost cutting—including more than 50,000 job losses—and targeted investments. It also comes as the tech giant works toward a deadline later this year to split in two, creating two Fortune 50 companies—one that will sell enterprise products and services and the other that will sell PCs and printers.
Despite the changes, Whitman said during a conference call Feb. 24 to discuss the latest quarterly financial numbers that she is pleased with the restructuring efforts and that "we’re on track with our turnaround and executing well on our separation." In an interview with Bloomberg after the company released its earnings, the CEO said that HP is "now in a position where we can actually make acquisitions, which we couldn't when we started" with the turnaround effort.