Hewlett-Packard is buying Wi-Fi network gear maker Aruba Networks for $2.7bn (£1.8bn) in cash in a bid to bolster its networking business.
The world’s second-biggest PC maker is offering $24.67 a share. Including cash and debt, the companies valued the deal at around $3bn.
The purchase is a boost for HP’s wireless local area network market as more companies allow their employees to access work systems through wireless devices.
The deal is the biggest for HP since its botched acquisition of the British firm Autonomy. The two firms have been battling since 2012, when HP took a massive $8.8bn writedown on Autonomy and fired its founder Mike Lynch.
HP, which has struggled to adapt to mobile and online computing, plans to separate its computer and printer businesses from its corporate hardware and services operations this year.
Aruba sells Wi-Fi gear to a wide range of clients including California State University and Dalian Wanda Group, which controls China’s biggest property developer and largest cinema chain.
Aruba’s chief executive Dominic Orr and chief strategy and technology officer Keerti Melkote will lead the new unit.