Hewlett-Packard Co. (HP) has acquired wireless networking infrastructure technology outfit Aruba Networks Inc.

According to reports the terms of the transaction will see HP buy Aruba for $24.67 per share in cash. The deal is worth $3 billion, but $2.7 billion net of cash and debt.

Based in Sunnyvale, CA, Aruba sells enterprise wireless LAN and edge access networking equipment, what they describe as helping businesses to engage “#GenMobile with exactly what they need, at exactly the right time, no matter what the device or location”.

The company had revenues of $729 million in 2014 and has reported compound annual revenue growth of 30 percent over the last five years, and as we reported February 26th is expected to be doing $1 billion a year in business by 2017.

“Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT,” Chairman, President and CEO of HP Meg Whitman said in a statement. “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 added that with Aruba they believe that by combining complementary product portfolios and go-to-market approaches they will be able to accelerate revenue growth and strengthen the financial performance of the combined HP Networking business, and create a leading competitor in the $18 billion plus campus networking sector.

Aruba was founded in 2002 by Keerti Melkote and Pankaj Manglik, and received early venture capital from firms including Sequoia Capital and Matrix Partners. The company went public in March 2007, the later acquired the wireless security business of Network Chemistry, and AirWave Wireless, a vendor of wireless network management software.

The acquisition is expected to close in the second half of HP’s fiscal year 2015, and is naturally subject to Aruba stockholder approval, regulatory approvals, as well as other customary closing conditions.

photo credit: Aruba RAPs, preparation for the snow. via photopin (license)