03 Mar 2015
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HP grabs Aruba in US$2.7 billion deal

By Heather Wright

HP is buying wireless networking company Aruba Networks in a US $2.7 billion deal aimed at creating a ‘leading competitor’ in the US$18 billion – and growing – campus networking sector.

Meg Whitman, HP chairman, president and CEO, says enterprises are facing a mobile-first world and looking for solutions that help them transition legacy investments to the new style of IT.

“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,” Whitman says.

HP says with Aruba it will deliver next-generation converged campus solutions, leveraging the Aruba brand.

The new combined organisation will be led by Aruba CEO Dominic Orr and chief strategy and technology officer, Keerti Melkote, reporting to Antonio Neri, leader of the HP Enterprise Group.

“With the shift to mobile, enterprise networking needs are exceeding the capabilities of legacy infrastructure,” HP says.

“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.”

Orr says the deal gives Aruba’s channel partners 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,” Orr says.

The deal has been approved by both companies’ boards of directors and is expected to close in the second half of HP’s fiscal year, subject to Aruba stockholder approval and regulatory approvals.

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