Hewlett Packard Enterprise and Juniper Networks have announced an agreement under which HPE will acquire Juniper in an all-cash transaction worth approximately $14 billion.
The acquisition is expected to double HPE’s networking business, largely by expanding HPE’s position in AI and hybrid cloud, thereby supporting HPE’s edge-to-cloud strategy and establishing an AI-native environment based on a cloud-native architecture. Furthermore, the combination with HPE Aruba Networking and HPE AI interconnect fabric is expected to accelerate innovation.
Upon completion of the transaction, Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to HPE President and CEO Antonio Neri.
“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,” said Neri. “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.”
Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of HPE and Juniper, Juniper shareholders will receive $40.00 per share in cash upon the completion of the transaction. The purchase price represents a premium of approximately 32% to the unaffected closing price of Juniper’s common stock on January 8, 2024, the last full trading day prior to media reports regarding a possible transaction.
The transaction is currently expected to close in late calendar year 2024 or early calendar year 2025, subject to receipt of regulatory approvals, approval of the transaction by Juniper shareholders, and satisfaction of other customary closing conditions.
The combination of HPE and Juniper is expected to advance HPE’s portfolio mix shift toward higher-growth solutions and strengthens its high-margin networking business, accelerating HPE’s sustainable profitable growth strategy.