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Start-Up to Cisco: Get Lost!

March 28, 2005

The NYT gets the skinny on what’s happening at Aruba Networks, a wireless networking start-up that has rather remarkably resisted buyout overtures from Cisco. The company and its investors believe independence and an IPO are the way to go.
I did it my way…
According to the article:
“We basically told them, ‘There’s not a number you can come up with that will be attractive enough to convince us to sell,’ ” said Don LeBeau, Aruba’s chief executive, who had served as a senior vice president at Cisco in the 1990’s.
That number could have been as high as $450 million, which is the amount Cisco paid for Aruba’s competitor, Airespace, in January. We admire Aruba’s gumption – but we also wonder if management is crossing the line into the land of hubris. Given the tough talk from Aruba’s management in the NYT article, anything less than a homerun IPO will now be considered a failure.
Read: Sell? No, We’ll Wait, One Start-Up Says – [ – reg. req.]
Read: Aruba Networks – Profile – [a:c]
Read: Cisco M&A Machine Back Up – [a:c]

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