Hewlett-Packard is boosting its mobile computing business... buying California-based Aruba Networks- a wi-fi network gear maker for $24.67 per share. Leah Duncan reports.
Hewlett-Packard is boosting its mobile computing business. It is buying California-based Aruba Networks-- a wi-fi network gear maker for $24.67 per share... that's a 34 percent premium to its closing price on February 24... one day before the stock spiked after Bloomberg reported the two firms were in talks. The total value of the deal including cash and debt is $3 billion. HP says the combination will enable it to help companies improve their wireless capabilities in this mobile-first world. CEO Meg Whitman says "By combining Aruba's world-class wireless mobility solutions with HP's leading switching portfolio, HP will offer the simplest, most secure networking solutions to help enterprises easily deploy next-generation mobile networks." HP shares climbed almost one percent in the premarket and are flat in early trading. Shares though tumbled last month after it reported flat or lower quarterly revenue in all of its operating units. Its full-year earnings forecast also took a hit due to the strong dollar. Aruba Networks shares down 1-percent near the acquisition price.