HP will acquire Aruba Networks for $3 billion to to boost their campus networking business.
Aruba, a Sunnyvale-based wireless networking company with nearly 1,800 employees, had revenues of $729 million in 2014, and reported compound annual revenue growth of 30 percent over the last five years.
Together, HP and Aruba will deliver converged campus solutions.
Aruba’s chief executive officer Dominic Orr and chief strategy and technology officer Keerti Melkote will lead the combined organization reporting to Antonio Neri, leader of HP Enterprise Group.
Meg Whitman, chairman, president and chief executive officer of HP, said: “By combining Aruba’s wireless mobility solutions with HP’s switching portfolio, HP will offer the most secure networking solutions to help enterprises easily deploy mobile networks.”
During the first quarter, HP said its Enterprise Group revenue increased 1 percent with a 14.4 percent operating margin. Industry Standard Servers revenue rose 6 percent, Storage revenue was flat, Business Critical Systems revenue fell 25 percent, Networking revenue increased 4 percent and Technology Services revenue fell 4 percent.
HP and Aruba will combine complementary products and go-to-market approaches to accelerate revenue growth and strengthen the financial performance of the combined HP Networking business, and create a leading competitor in the $18 billion campus networking sector.