HP is believed to be talking to Aruba Networks about a possible acquisition, which could be announced next week.
Aruba supplies wireless networking infrastructure, used largely by hotels, universities and shopping malls.
As rumours about the proposed acquisition surfaced, Aruba’s stock rose 21%, giving it a market value of about $2,4-billion, according to Bloomberg News.
Should the acquisition go through it will be the largest in a few years. HP has been focusing on cutting costs and growing the business, with plans to split the company in two later this year well advanced.
Aruba would most likely fit into HP’s networking division, which last year contributed about $562-million to the company’s revenue.
It is believed that HP is also currently selling its majority stake in H3C, was formed as a joint venture between Huawei and 3Com, which was later acquired by HP.
