Hewlett Packard Enterprise to acquire Juniper Networks in $14bn deal

Hewlett Packard Enterprise (NYSE: HPE), a global technology leader, and Juniper Networks, Inc. (NYSE: JNPR), a pioneer in AI-native networks, have announced a definitive agreement in which HPE will acquire Juniper in an all-cash transaction valued at $40.00 per share. This monumental deal represents an equity value of approximately $14 billion, making it a significant event in the technology sector.

The acquisition is a strategic move by HPE, aimed at advancing its portfolio mix towards higher-growth solutions. This deal is expected to double HPE’s networking business, creating a new leader in the networking domain with a comprehensive portfolio. The combination of these two companies is not only expected to be accretive to HPE’s non-GAAP EPS and free cash flow in the first year post-close but also positions HPE for long-term growth.

This transformative acquisition aligns with the accelerating demand for secure, unified technology solutions driven by the explosion of AI and hybrid cloud-based businesses. HPE’s acquisition of Juniper is an effort to capitalize on these IT trends, particularly AI, which continues to disrupt the technology landscape.

By integrating Juniper’s AI-native environment and cloud-native architecture into HPE’s edge-to-cloud strategy, the merger supercharges HPE’s capability to lead in the AI-native sector. The combined portfolios of HPE and Juniper will offer customers a complete, secure range of solutions, meeting the increasing complexity of connectivity needs.

Juniper, known for its Mist AI and Cloud platform, brings to the table a suite of cloud-delivered networking solutions, software, and services. This expertise, combined with HPE Aruba Networking and AI interconnect fabric, will create a leading industry player, accelerating innovation and modernizing networking optimized for hybrid cloud and AI.

Rami Rahim, CEO of Juniper Networks, will lead the combined HPE networking business post-acquisition, reporting to Antonio Neri, HPE President and CEO. Antonio Neri commented on the acquisition: “HPE’s acquisition of Juniper represents an important inflection point in the industry and will change the dynamics in the networking market, providing customers and partners with a new alternative that meets their toughest demands.”

Rami Rahim also expressed his enthusiasm: “Our multi-year focus on innovative, secure AI-native solutions has driven Juniper Networks’ outstanding performance. By joining HPE, we can accelerate the next phase of our journey.”

The transaction, unanimously approved by both companies’ Boards of Directors, is expected to close in late 2024 or early 2025, subject to regulatory approvals and other customary conditions. The deal is anticipated to bring considerable financial benefits, including a substantial increase in HPE’s total addressable market and significant cost synergies.