Hewlett-Packard has announced a definitive agreement to acquire Aruba Networks, a leading provider of network access solution for mobile enterprise, for about $2.7 billion in an all-cash deal.
The deal announced on Monday values Aruba share at $24.67, or about $3 billion, including cash and debt.
Both companies’ boards of directors have approved the deal.
Together, the companies will deliver converged campus solutions and the new organisation will be led by Aruba’s Chief Executive Officer Dominic Orr.
In reaction to the deal, Aruba’s stock traded lower in the pre-market on Monday while HP was higher.
“Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT,” the CEO of HP, Meg Whitman, said in a press release.
“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.”
The transaction is expected to close in the second half of HP’s fiscal year 2015, subject to Aruba stockholder and U.S. regulatory approvals.