HP agrees $3bn deal for wireless networking firm Aruba

Hewlett-Packard has agreed to buy wi-fi network systems maker Aruba for $3bn (£2bn).

HP hopes that the acquisition of California-based Aruba will help it compete in the university and office campus networking market, which it estimates to be worth $18bn.

Aruba's chief executive Dominic Orr and chief strategy and technology officer Keerti Melkote will lead the new unit.

HP will now seek shareholder approval for the deal.

Aruba posted $729m in sales in the 2014 financial year and has reported annual revenue growth averaging 30% each year over the last five years.

Its business is targeted at people who rely on mobile devices for work and communication.

"Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT," said Meg Whitman, HP's chief executive.

HP said that it expects to close the deal in the second half of the company's 2015 financial year.