HP To Buy Aruba For $24.67/shr - Quick Facts

(RTTNews) - Hewlett-Packard Company (HPQ) and Aruba Networks (ARUN) announced a definitive agreement for HP to acquire Aruba, a provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt approximately $2.7 billion.

Listed on the NASDAQ and Russell 2000 Index, Aruba is based in Sunnyvale, California, and has operations throughout the Americas, Europe, Middle East, Africa and Asia Pacific regions. The company has approximately 1,800 employees. Aruba had revenues of $729 million in fiscal 2014, and has reported compound annual revenue growth of 30 percent over the last five years.

The transaction is expected to close in the second half of HP's fiscal 2015. Overall, HP expects the acquisition to be accretive to earnings in the first full year following close.

The combined organization will be led by Aruba's CEO Dominic Orr, and Chief Strategy and Technology Officer, Keerti Melkote, reporting to Antonio Neri, leader of HP Enterprise Group.