HP to Buy Aruba Networks for $3 Billion
The deal will enable HP to address an increasingly mobile business world by adding Aruba's wireless capabilities to its networking business.Hewlett-Packard is buying Aruba Networks, adding a strong wireless and mobility element to its networking business. HP and Aruba officials announced the $3 billion deal March 2, less than a week after rumors of the deal began to surface and a day before Aruba kicks off its annual Atmosphere user conference in Las Vegas. The deal, expected to close in the second half of HP's fiscal year, will combine HP's broad enterprise networking business with Aruba's wireless networking capabilities to give the tech giant a broader offering as the business world increasingly becomes more mobile. Once the deal closes, the new HP Networking unit will be led by Aruba CEO Dominic Orr and Keerti Melkote, Aruba's co-founder and chief strategy and technology officer. They will report to Antonio Neri, head of HP's Enterprise Group. The deal has been approved by the boards of directors of both companies.
The move comes at a time of transition for HP, which under CEO Meg Whitman has been undergoing a multiyear restructuring aimed at making the company financially stronger. At the same time, HP is in the process of splitting in two, with one company—which will be called HP Inc.—offering PCs and printers and the other—Hewlett-Packard Enterprise—selling enterprise solutions and services. That split is scheduled to be completed later this year.