HP and Aruba Networks have announced a definitive agreement for HP to acquire Aruba, a provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash.
The equity value of the transaction is approximately $3-billion, and net of cash and debt approximately $2,7-billion.
Both companies’ boards of directors have approved the deal.
Aruba is a Sunnyvale-based industry leader in wireless networking with approximately 1 800 employees. The company had revenues of $729-million in fiscal 2014, and has reported compound annual revenue growth of 30% over the last five years.
The company has a well-regarded innovation engine and specialised sales, marketing and channel model, complementing HP’s networking business and go-to-market breadth. Together, HP and Aruba will deliver next-generation converged campus solutions, leveraging the strong Aruba brand.
The new combined organisation will be led by Aruba’s CEO Dominic Orr and chief strategy and technology officer Keerti Melkote, reporting to Antonio Neri, leader of HP Enterprise Group
With the shift to mobile, enterprise networking needs are exceeding the capabilities of legacy infrastructure. At the same time, organisations 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.
“Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT,” says Meg Whitman, chairman, president and CEO of HP.
“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.”
Orr adds: “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.”
