HPE buys Juniper Networks in bid to bolster its AI networking offerings
HPE is buying Juniper Networks for $14 billion, based on a $40-per-share valuation. The idea: to give customers – think data centres, banks and telecomms companies – cutting-edge AI technology combined with HPE’s enterprise-level hardware.
“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,” said HPE President and CEO Antonio Neri in a statement.
“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,” he added.
Benefits of the HPE and Juniper deal
In the statement, designed for investors and shareholders, HPE set out the following key benefits:
- Compelling pro forma financial profile
- Positions HPE for long-term growth for shareholders and greater investment capacity
- Complementary capabilities to deliver next-generation AI-native networking and enable new digital experiences through secure, intelligent connectivity
- Accelerates HPE’s strategic evolution and expands total addressable market
HPE and Juniper expect the deal to be complete by the end of this year, or early 2025, but it needs to pass through regulatory approvals and needs the approval of Juniper Networks shareholders.
Juniper Networks boss stays on
Rami Rahim, CEO of Juniper Networks, will move with the company, and report directly to HPE’s CEO.
“We have successfully delivered exceptional user experiences and simplified operations,” said Rahim, “and by joining HPE, I believe we can accelerate the next phase of our journey.”
He added: “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.”
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Tim Danton
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