Wi-fidelity – HP in talks to buy Aruba Networks for over US$2bn

26 Feb 2015

Hewlett-Packard is understood to be in talks to acquire Wi-Fi infrastructure player Aruba Networks in a move that would bring HP closer to wireless infrastructure in hotels, airports and universities.

Aruba, which makes hardware and software to run Wi-Fi networks in a reliable way, is currently valued at more than US$2bn and news of the acquisition sent the company’s shares flying 21pc to US$22.24.

Aruba’s annual revenues are projected to grow to US$1bn by 2017. Last year, the company reported US$728.9m, up 22pc, and narrowed its losses to US$29m.

In October, HP revealed it plans to split into two companies: Hewlett-Packard Enterprise, which will focus on servers and software, and HP Inc, a PC and printing company.

The acquisition would be the largest acquisition for HP in several years.

The acquisition would bring HP directly to the network interface between smartphone and computer users in public places, including airports and hotels, as well as offices and universities.

Wi-Fi image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years