HP, Aruba in rumoured acquisition talks
Bloomberg claims HP could announce acquisition of wireless specialist as early as next week
HP is reportedly looking to acquire wireless specialist Aruba Networks for an as of yet undisclosed sum, according to Bloomberg Business sources.
Citing people with knowledge of the matter, the publication said that the deal could be announced this week. However, Bloomberg's unnamed sources added that talks over the acquisition were still not final, and could fall through at the last minute.
Bloomberg said that Aruba's stock rose by 21% as news of the proposed acquisition broke, giving the company a market value of $2.4bn. The publication's analysts also predicted that the company's annual sales would break the $1bn mark by 2017.
HP has not made a major acquisition for several years, though reports have suggested that CEO Meg Whitman is looking to address this now that the company is in better financial shape. According to Bloomberg, Whitman said on the company's latest earnings call that the company is now in a position to make acquisitions.
From a strategic point of view, analysts say that it is easy to imagine HP wanting a slice of the ever-growing enterprise-grade wireless market, in which Aruba is a leading player. The company has in recent years made large strides in the enterprise segment to lessen the dependence on its sluggish PC business.
Aruba has not yet responded to ITP.net requests for comment on the rumoured deal.