Hewlett Packard Enterprise Buying Juniper Networks for About $14B
Hewlett Packard Enterprise (HPE) announced the acquisition of Juniper Networks on Tuesday for about $14 billion in equity.
Houston-based HPE expects to double its networking business with the addition, as well as enhance its "edge-to-cloud strategy." HPE will add Juniper Networks' "Mist AI and Cloud platform" solutions, which are seen as foundational for the company's "digital and AI strategies." HPE also expects to support its cloud and AI solutions by integrating Juniper Networks technologies into HPE's Aruba Networking and "AI interconnect fabric."
HPE's President and CEO Antonio Neri emphasized the AI technology gains from buying Juniper Networks.
“This transaction will strengthen HPE’s position at the nexus of accelerating macro-AI trends, expand our total addressable market, and drive further innovation for customers as we help bridge the AI-native and cloud-native worlds, while also generating significant value for shareholders," Neri stated, in HPE's announcement of the deal.
As part of the deal, Juniper's CEO Rami Rahim will join HPE and "lead the combined HPE networking business," the announcement indicated.
The acquisition of Juniper Networks, per non-GAAP analysis, is expected to contribute to "more than 56% of HPE’s total operating income."
The deal has already been approved by the boards of both companies, but it awaits Juniper Networks shareholder approval, as well as regulatory approvals. The expected close for this transaction is forecasted for the end of 2024, or "early calendar year 2025."
Kurt Mackie is senior news producer for 1105 Media's Converge360 group.