HP to buy Aruba Networks for $2.7B
HP announced today that it will acquire Aruba Networks, a fast-growing wireless networking firm based in California, for $2.7 billion in cash. Aruba's brand and leadership will remain in place under the auspices of HP Enterprise Group.
The companies say the partnership will allow them to target opportunities and compete with market leader Cisco in next-generation wireless network access, as businesses are increasingly of the mind that networking infrastructure should shift to focus on mobility.
Aruba provides stand-alone and managed Wi-Fi networks for company and university campuses, stadiums, retailers and other venues. Its deployments combine access points, network management software, network security, and location-based features (inlcuding a beacon line) to put mobile first and make sure that end users have a seamless experience connecting on all kinds of devices.
HP describes Aruba's offerings as complementary to its own networking products and services. It plans to draw on Aruba's expertise in mobile-friendly network access and management, while relying on existing HP technology for back-end infrastructure like network switches.
The company reported revenue of $728.9 million in its 2014 fiscal year that ended July 31, up almost 22 percent from the prior year.
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