By Tess Stynes
Hewlett-Packard Co. agreed to acquire wireless-networking
company Aruba Networks Inc. in a deal valued at roughly $2.7
billion, expanding H-P's capabilities in the mobile market.
H-P is offering $24.67 a share, a 1% discount to Aruba Network's
close on Friday, when the stock reached the highest level in nearly
two years following a report about a possible deal. Including cash
and debt, the companies valued the deal at roughly $3 billion.
H-P Chairman and Chief Executive Meg Whitman said the deal will
combines Aruba's wireless mobility solutions with H-P's switching
portfolio, allowing the company to offer most secure networking
solutions to help enterprises easily deploy next-generation mobile
networks.
Sunnyvale, Calif.-based Aruba Networks reported revenue of $729
million in fiscal 2014.
The H-P and Aruba operation will be led by Aruba Chief Executive
Officer Dominic Orr and Chief Strategy and Technology Officer
Keerti Melkote. They will report to Antonio Neri, head of H-P
Enterprise Group.
Both companies' boards of directors have approved the deal.
Hewlett-Packard in October unveiled plans to separate its
personal-computer and printer businesses from its corporate
hardware and services operations, which has been billed as the
growth engine.
Write to Tess Stynes at tess.stynes@wsj.com
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