HP is buying Aruba Networks for $2.7bn, in an acquisition that will see the company grow its mobile networking business.
Through the deal, HP plans to deliver next-generation converged campus 802.11ac networks, built on the Aruba brand.
HP hopes the acquisition will help it meet demand for enterprise users as they shift from legacy infrastructure to a more mobile-enabled workplace, which uses the 8011 Wi-Fi Alliance standard.
The acquisition comes at a time when HP is getting ready to split its enterprise business from its PC and printing businesses. In its latest financial report, HP’s networking division posted a 16% decline in net earnings compared with 2014.
Aruba could help HP grow its mobile enterprise business. “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,” said HP.
According to HP, 802.11ac will enable enterprises to support faster speeds and access to cloud applications that users expect. It delivers data rates up to 1.3Gbps now and will deliver even higher rates in the second wave of products expected in 2015-2016.
The new combined organisation will be headed up by Aruba’s chief executive officer Dominic Orr, alongside chief strategy and technology officer Keerti Melkote. Both will report to leader of HP Enterprise Group, Antonio Neri.
HP chairman, president and CEO Meg Whitman said: “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.”
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