Aruba partners hoping to receive IPO windfall

Vendor expects to raise between $64m and $80m by floating on Nasdaq imminently

Aruba’s UK channel partners are set for a cash injection as the vendor gears up for its initial public offering (IPO).

The wireless networking vendor is set to debut on Nasdaq on 27 March and has revealed that it expects the move to raise between $64m and $80m.

Jess Thompson-Hughes, managing director at Aruba distributor React Technologies, expressed surprise that Aruba’s target value fell so far short of the $450m Cisco paid to acquire rival vendor Airespace in 2005.

However, he said: “The fact that Aruba will remain an independent entity in its own right is great. Some of the money will go into research and development, but because it has a good product already, the rest will be invested in growing the business.”

James Reay, Aruba product manager at distributor Noxs, said: “This can only be good news for the channel. Aruba has done very well in raising its profile in the past six months and if it can continue in the same vein it will be good for all partners.”

Paul Spencer, managing director at VAR Axial Systems, said: “To date Aruba has had limited resources in the UK. A cash injection will allow it to invest in its European headcount and local resources, which will make our life a lot easier.”

Partners are also hopeful the money can put an end to a period of disquiet in Aruba’s UK channel.

Thompson-Hughes claimed that some accredited Aruba resellers were losing out on bids to unaccredited rivals that were able to gain high discounts through distribution at the eleventh hour.

“We’ve gone through more pain with Aruba than any other vendor,” he said. “But it has taken on its first channel manager and we’re hoping for an improvement.”

Aruba declined to comment on the IPO and partner issues, claiming it was in a “quiet period”.