Hewlett-Packard will purchase networking platform Aruba Networks in buy estimated at $2.7 billion, according to a press release from both companies. PC producer HP is already known to be gradually moving toward providing services for the business industry .
HP will take over Aruba for $24.67 per share in cash, according to the joint announcement. The arrangement is projected to close amid the second semester of HP’s fiscal year.
HP’s CEO Meg Whitman noted in a press discharge:
“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.”
After the report of the acquisition rolled out, HP’s stocks went up by 0.83% in pre-market trading and Aruba Networks’ shares dropped 1.5%.
Aruba Networks is headquartered in Sunnyvale, California and works in remote systems services, more specifically in the mobile business sector. The organization has 1,800 employees and reported income of $729 million last financial year.
HP’s investment in Aruba Networks is the biggest since its fizzled 2011 purchase of software company Autonomy for $11 billion. That deal closed with a $8.8 billion record for HP and a request by the Justice Department after HP blamed Autonomy for accounting fraud.
Whitman is driving a noteworthy move for HP, which seems to be shifting from the weaker PC market to networking and business alternatives. In October, HP reported it would divide its PC and printer business from equipment and service operations.
Given the upcoming division , a lower profit projection and doubts concerning HP’s capacity to adjust in a moving corporate business sector, a multibillion-dollar buy may be hazardous. Nevertheless, Whitman may be focusing on Wi-Fi networking equipment producer Aruba to handle those precise challenges , pursuing income in a developing market and in China.
Aruba builds equipment and software used to assemble wi-fi systems for clients like China’s Dalian Wanda Group Co., which employs the technology in shopping centers. Different clients include California State University at Los Angeles and the Edzan Hotels and Suites in Qatar.
Under the deal, Aruba is to be part of the HP Networking business within HP’s Enterprise Group.
The deal report comes days after Whitman told Recode that her organization has to make a few acquisitions to keep on growing. She recognized that HP can bring some “advancement” to the industry, yet the fastest and most ideal approach to accomplish such an objective would be to secure other companies.
Image Source: Chicago Suntimes