HP announced on Monday that it has agreed to acquire top wireless networking company Aruba Networks in a deal valued at $2.7 billion.
As the largest HP acquisition since the company's current CEO Meg Whitman took the helm in 2011, the deal fits nicely into HP's enterprise portfolio prior to splitting off the PC and printer business. The move puts HP into the number two spot in wireless networking market share, after rival Cisco, according to IDC figures. HP kick started its networking business in 2009 by paying $2.7 billion for network equipment maker 3COM.
In order to fill out its enterprise networking portfolio, HP said that it will form a combined wired and wireless solutions organization and leverage the Aruba brand. The new division will be led by Aruba's CEO Dominic Orr and Chief Strategy and Technology Officer Keerti Melkote, according to HP. As a global force in wireless networking, Aruba fits nicely into the HP network offering and global presence as a comprehensive offering for addressing next generation enterprise and campus networks.
“The transaction brings together Aruba’s best-of-breed mobility hardware and software solutions with HP’s leading switching portfolio,” said Orr in a statement. “In addition, Aruba’s channel partners will have the opportunity to expand their businesses with HP offerings."
Aruba started 13 years ago in Silicon Valley and received a single $30 million venture capital round before going public in 2007. The company recently reported record revenue growth of $212.9 million, growing 21 percent year over year.
The board of directors for both companies have approved the HP acquisition of Aruba. The transaction is expected to close later this year.