HPE Acquiring Juniper Networks to 'Take Advantage of Explosion of AI and Hybrid Cloud-Driven Business'
Hewlett Packard Enterprise (HPE) has announced the acquisition of Juniper Networks on for approximately $14 billion in equity.
Houston-based HPE, an enterprise IT leader specializing in areas such as servers, storage, networking, software, and cloud solutions, 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 says the AI technology gains from buying Juniper Networks will be significant.
"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 said in a statement.
As part of the deal, Juniper's CEO Rami Rahim will join HPE and "lead the combined HPE networking business," the announcement indicated.
Our multi-year focus on innovative, secure AI-native solutions has driven Juniper Networks’ outstanding performance, Rahim said in a statement. "We have successfully delivered exceptional user experiences and simplified operations, and by joining HPE, I believe we can accelerate the next phase of our journey. In addition, this combination maximizes value for our shareholders through a meaningful all-cash premium. We look forward to working with the talented HPE team to drive innovation for enterprise, service provider and cloud customers across all domains, including campus, branch, data center and the wide area network."
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.