Yup: HP’s buying Aruba for about $3B

It’s true: Hewlett-Packard is buying Aruba Networks and its campus Wi-Fi expertise for about $2.7 billion, exclusive of cash, both companies said early Monday.

The per-share price is $24.67 in cash.

From the press release:

Together, [company]HP[/company] and [company]Aruba[/company] will deliver next-generation converged campus solutions, leveraging the strong Aruba brand.  This new combined organization will be led by Aruba’s Chief Executive Officer Dominic Orr, and Chief Strategy and Technology Officer, Keerti Melkote, reporting to Antonio Neri, leader of HP Enterprise Group.

News of the deal leaked last week and was first reported by Bloomberg.

This purchase should give HP more ammo to go after rival Cisco in the WLAN market. The HP and Aruba boards have approved the deal, which is expected to close between May and October of this year.

It also adds another level of complexity for HP which, as it adds Aruba to the mix, is dividing itself into two companies in what has been described as the biggest corporate break up in history.  The two entities at the end of the process will be HP Enterprise — converged hardware, cloud etc. and presumably Aruba’s new home and the HP Co.,the new home for all those HP PCs and printers.