HP Buying Aruba Networks for $2.7 Billion

FILE - In this Aug. 21, 2012, file photo, the Hewlett-Packard Co. logo is seen outside the company's headquarters in Palo Alto, Calif. Hewlett-Packard Co. is splitting itself into two companies, one focused on its personal computer and printing business and another on technology services, such as data storage, servers and software, as it aims to drive stronger profitability. (PHOTO CREDIT: Paul Sakuma, AP)
FILE – In this Aug. 21, 2012, file photo, the Hewlett-Packard Co. logo is seen outside the company’s headquarters in Palo Alto, Calif. Hewlett-Packard Co. is splitting itself into two companies, one focused on its personal computer and printing business and another on technology services, such as data storage, servers and software, as it aims to drive stronger profitability. (PHOTO CREDIT: Paul Sakuma, AP)

Hewlett-Packard will acquire networking company Aruba Networks in a deal valued at $2.7 billion, the companies said Monday, as the personal computer maker continues to shift toward offering services for the enterprise market.

HP will scoop up Aruba for $24.67 a share in cash, reads a joint statement. The deal is expected to close during the second half of HP’s fiscal year.

“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,” HP’s CEO Meg Whitman said in a release.

Shares of HP climbed 0.83% in pre-market trading, while shares of Aruba Networks slipped 1.5%.

Aruba Networks, based in Sunnyvale, California, specializes in wireless networking, notably in the mobile market. The company has 1,800 employees, and reported revenue of $729 million last fiscal year.

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SOURCE: USA Today, Brett Molina

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