Aruba Networks and HP Combine Forces

On May 19, 2015, HP completed the acquisition of Aruba Networks for a transaction value of $3 billion. Aruba boasts a highly regarded innovation engine and specialized sales, marketing and channel model, which will complement HP’s networking business and go-to-market breadth. Together, Aruba and HP will deliver next-generation converged campus solutions, leveraging the strong Aruba brand.

1. What is being announced?

HP has completed the acquisition of Aruba Networks, a leading provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of this acquisition is approximately $3.0 billion, and the value net of cash and debt is approximately $2.7 billion.

2. What does it mean that the acquisition has “closed”?

HP announced its intent to acquire Aruba on March 2, 2015. The close of this acquisition means that all approvals (including Aruba’s shareholders) and required regional and regulatory filings are complete and Aruba is now wholly owned by HP.

3. How will Aruba fit into HP? What will the new organizational structure look like?

Effective immediately, Aruba will be combined into the HP Networking business within HP’s Enterprise Group organization. Dominic Orr, previously Chief Executive Officer of Aruba, will now serve as SVP and General Manager of HP Networking, reporting to Antonio Neri, SVP and General Manager of HP’s Enterprise Group. In this role, Orr is responsible for overall business strategy and execution, including product and go-to-market across Data Center Networking, Campus Wired and Wireless, Branch including Routing, and Small Business Networking. Keerti Melkote, previously CTO and co-founder of Aruba, will now serve as Chief Product and Technology Officer, HP Networking. We anticipate that the rest of Aruba’s management team members will have leadership roles in the Aruba HP Networking business and Aruba employees will onboard to HP during HP’s fiscal year 2016.

4. What does the close of the acquisition mean for future and current customers?

Combining Aruba and HP creates a leader in enterprise mobility, positioning HP to enable and accelerate the enterprise transition to a converged campus network. The two companies are extremely complementary. Aruba boasts a highly regarded innovation engine and specialized sales, marketing and channel model, complementing HP’s leading networking business and broad go-to-market approach. Together, HP and Aruba will deliver next-generation converged campus solutions, leveraging the strong Aruba brand.

5. How will Aruba technology be integrated into HP’s portfolio?

We are finalizing our plans for integrating the businesses, which will be reviewed by the new combined leadership team headed by Dominic Orr. We will share details as soon as possible, starting with our go-forward strategy within 30 days, our partner program and sales approach within 60 days, and our roadmap and product integration details within 90 days.

6. How does Aruba fit into HP’s vision for the unified wired and wireless campus?

Aruba’s value proposition aligns with HP’s vision for the unified wired and wireless campus, which is a key part of that strategy. Aruba will bring its best-of-breed wireless LAN infrastructure and policy management to the access layer, complementing HP’s strong footprint in wired LAN. Aruba will also bring enterprise mobility software, security and orchestration solutions that can be integrated across the campus infrastructure. Together, HP and Aruba will offer a unified solution to help customers successfully manage their networking needs throughout the transition to a mobile first infrastructure.