HP has confirmed rumours it is acquiring Aruba Networks, revealing it is laying down $3bn (£1.9bn) to buy the world's largest specialist wireless LAN vendor.
HP said today it has reached a definitive agreement to buy the wireless networking maestro in a move it claims will "create a leading competitor in the $18bn campus networking sector" after the deal is closed in its second half.
Aruba CEO Dominic Orr will stay on to lead a new combined organisation that will report to HP Enterprise Group head Antonio Neri.
With revenues last year of $729m and about 1,800 staff, Aruba has enjoyed compound annual growth over the past five years, according to HP.
Confirmation of the deal follows a report last week from Bloomberg claiming the duo were in talks.
"Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT," said HP chief executive Meg Whitman.
"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."
Orr, who will lead the new unit alongside Aruba CTO Keerti Melkote, said: "Together with HP, we have a tremendous opportunity to become an even greater force in enterprise mobility and networking."
The equity value of the transaction is about $3bn, and net of cash and debt approximately $2.7bn.
According to IDC, Aruba boasted a 12 per cent share of the enterprise WLAN market in Q2 last year, compared with HP's 4.5 per cent share of the overall WLAN market.
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