HP sets net to snare Aruba: reports
Seeks top-up to WiFi business
HP looks like breaking its long embargo on large acquisitions by snaffling Aruba Networks, according to emerging reports.
Bloomberg's report cites the usual “people with knowledge of the matter” as saying the two companies are in talks, adding that the deal is in such early stages that it could still fall through.
The Wi-Fi infrastructure outfit is due to announce its Q2 2015 results on February 26 in the US, and its recent wins include Wanda Group malls and California State University. In Q1 of the current financial year, it recorded revenue of US$208 million, up 29 per cent year-on-year.
While adding only a blip to HP's overall revenue, Aruba would be a handy top-up for its networking business, which slid 10.8 per cent year-on-year in the just-announced first quarter results to US$562 million.
Whitman had remarked, after releasing the earnings results, that HP was in a position to look at acquisitions. Later this year, the company will split its PC and printer business off from its enterprise business, due to complete by October.
Aruba's market value is around $2bn. Just how many zeroes HP is willing to put on a cheque, or what number would precede them, isn't known. ®