Building Wi-Fi mojo

Yup: HP’s buying Aruba for about $3B

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It’s true: Hewlett-Packard is buying Aruba Networks and its campus Wi-Fi expertise for about $2.7 billion, exclusive of cash, both companies said early Monday.

The per-share price is $24.67 in cash.

From the press release:

Together, [company]HP[/company] and [company]Aruba[/company] will deliver next-generation converged campus solutions, leveraging the strong Aruba brand.  This new combined organization will be led by Aruba’s Chief Executive Officer Dominic Orr, and Chief Strategy and Technology Officer, Keerti Melkote, reporting to Antonio Neri, leader of HP Enterprise Group.

News of the deal leaked last week and was first reported by Bloomberg.

This purchase should give HP more ammo to go after rival Cisco in the WLAN market. The HP and Aruba boards have approved the deal, which is expected to close between May and October of this year.

It also adds another level of complexity for HP which, as it adds Aruba to the mix, is dividing itself into two companies in what has been described as the biggest corporate break up in history.  The two entities at the end of the process will be HP Enterprise — converged hardware, cloud etc. and presumably Aruba’s new home and the HP Co.,the new home for all those HP PCs and printers.

2 Responses to “Yup: HP’s buying Aruba for about $3B”

  1. Kyle Lyles

    “leveraging the strong Aruba brand” just like: Compaq, Voodoo PC, Mercury Interactive, EDS, Palm, 3Com, Autonomy…….

    HP under Meg Whitman – a redux of her “buying” Skype, when in fact, she spent $3.1bn and never truly owned the rights to the technology.

    Let’s face it people, Whitman is even more clueless than Mark Hurd and likely as bad as Carly Fiorina. I have yet to read a single media piece that speaks with true HP employees as they will tell you that the fish is rotten on the inside and there is no hope left for the once glorious brand and grandfather of Silicon Valley.

  2. Justin

    This is a joke. HP will kill the Aruba brand in Under 18 months. Just like they have with everything else. Remember, HP already tried to go to war against Cisco and hired tens of thousands top notch sales people, only to have them all quit. FAIL