Hewlett Packard Enterprise (HPE) is to acquire Juniper Networks in an all-cash transaction for $40.00 per share, representing an equity value of approximately $14bn.
The move is designed to combine the companies in order to advance HPE’s portfolio, shifting the mix towards higher-growth solutions, such as for artificial intelligence (AI) and hybrid cloud-driven business. It will also help to strengthen HPE’s high-margin networking business, accelerating its sustainable profitable growth strategy.
It is expected that the acquisition could double HPE’s networking business, with a comprehensive portfolio that presents customers and partners with a compelling new choice to drive business value against a backdrop of AI and hybrid cloud-driven business accelerating demand for secure, unified technology solutions. HPE has been aligning its portfolio to capitalise on these trends with networking viewed as a critical component.
Combining HPE and Juniper’s portfolios is in line with HPE’s edge-to-cloud strategy, extending its ability to lead in an AI-native environment based on a foundational cloud-native architecture. Leveraging “industry-leading AI,” the combined company aims to create better user and operator experiences, benefitting customers’ high-performance networks and cloud data centres.
Combining resources to enhance AI-native networking
Juniper’s suite of cloud-delivered networking solutions, software, and services includes the Mist AI and Cloud platform. The combination of this with HPE Aruba Networking and HPE’s purposely designed HPE AI interconnect fabric is designed to bring together enterprise reach, and cloud-native and AI-native management and control, to create an industry player that can accelerate innovation to deliver further modernised networking for hybrid cloud and AI.
Upon completion of the transaction, Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to HPE President and CEO Antonio Neri.
Says Neri of the acquisition: “HPE’s acquisition of Juniper represents an important inflection point in the industry and will change the dynamics in the networking market and provide customers and partners with a new alternative that meets their toughest demands. 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. I am excited to welcome Juniper’s talented employees to our team as we bring together two companies with complementary portfolios and proven track records of driving innovation within the industry.”
Adds Rahim: “Our multi-year focus on innovative, secure AI-native solutions has driven Juniper Networks’ outstanding performance. 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 maximises 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 centre and the wide area network.”
