Katie O'Brien
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Katie O'Brien in Senior Content Editor,

​HP to Acquire Aruba Networks

Hewlett Packard (NYSE: HPQ) will acquire Wi-Fi provider Aruba Networks (NASDAQ: ARUN), according to Fortune. At $24.67 per share, the transaction is valued at $3 billion, along with $2.7 billion in cash and debt. According to Fortune, this deal will make Aruba a subsidiary of Hewlett Packard.

“Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT,” CEO of HP Meg Whitman said in a statement. “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.”

Wall Street Journal commenter Randy Cook says:

“H-P’s strong market position in corporate hardware'... Wintel PCs are a near-zero margin game for any US company. Printers, ink/toner, and servers are in not much better shape. With software revenue down, what is left? Churn more acquisitions or return money to shareholders. “