Hewlett Packard Enterprise acquires Juniper Networks

The combination of leading providers enhances a secure, unified, cloud and AI-based network to drive innovation from the edge of the computing network to the cloud.

The combination of HPE and Juniper builds on HPE's portfolio shift towards more value-added solutions and strengthens the company's network solutions business.

Hewlett Packard Enterprise (HPE) and Juniper Networks, Inc. (JNPR), a leader in artificial intelligence networking, announced on January 9, 2024 that they have entered into a definitive agreement under which HPE will acquire Juniper for $40 per share, a total value of approximately $14 billion dollars (12.8 billion euros).

The acquisition will most likely double HPE's business in the network solutions segment

The combination of HPE and Juniper builds on the change in the structure of HPE's portfolio towards solutions with greater added value and strengthens the company's business in the field of network solutions, which accelerates the strategy of sustainable profitable and long-term growth of the company. The transaction is expected to be accretive to earnings per share in the first year after completion.

The acquisition is likely to double HPE's business in the network solutions segment and create a new leading network provider with a comprehensive portfolio that offers customers and partners a compelling choice. The explosion of artificial intelligence and hybrid cloud business is accelerating the demand for secure and unified technology solutions that connect, secure and analyze enterprise data from the edge to the cloud. These trends, and AI in particular, will continue to be the most demanding workloads for enterprises, which is why HPE is aligning its portfolio with networking as the key connecting component.

Combining the complementary portfolios of HPE and Juniper builds on HPE's strategy and leadership in delivering edge-to-cloud solutions.

The merger builds on HPE's edge-to-cloud strategy

Combining the complementary portfolios of HPE and Juniper builds on HPE's edge-to-cloud strategy. HPE and Juniper will provide customers of all sizes with a complete and secure portfolio that enables the network architecture needed to manage and simplify their growing and increasingly complex connectivity needs. Using industry-leading artificial intelligence, the combined company is expected to create better user and operator experiences that will benefit customers' high-performance networks and cloud data centers.

Through its portfolio of network solutions, software and cloud services, including the Mist AI and Cloud platforms, Juniper helps organizations securely and efficiently access the critical cloud infrastructure that underpins digital and business strategies. introduction of artificial intelligence. The combination with HPE Aruba Networking and purpose-built HPE AI connectivity will bring together enterprise reach and management and control tailored to the cloud and artificial intelligence. This will create an industry leader that will accelerate innovation to deliver a modern network optimized for hybrid cloud and artificial intelligence.

Upon completion of the transaction, he will be a director of Juniper Rami Rahim led the combined business of network solutions in HPE and reported to the president and CEO of the company Antonio Neri.

An important turning point in the industry

"The acquisition of Juniper by HPE represents a significant inflection point in the industry and will change the dynamics of the networking solutions market, offering customers and partners a new alternative to meet their most demanding requirements," he said. Don't. "The merger will strengthen HPE's position at the intersection of accelerating macro trends in artificial intelligence, expand our target market, and drive further innovation for customers as we help connect the world of artificial intelligence and the world of the cloud, and at the same time we will also create significant value for shareholders. I am excited to welcome the talented Juniper employees to my team as we combine two companies with complementary portfolios and a proven track record of driving innovation in the industry."

"Our years-long focus on innovative and secure AI-based solutions has underpinned Juniper Networks' tremendous success," he said. Rami Rahim, CEO of Juniper Networks. "We have provided an exceptional user experience and simplified the operation. By joining the HPE company, I believe that we can speed up the next phase of our journey. At the same time, the combination increases the value for our shareholders. We look forward to working with HPE's talented team and driving innovation that will bring added value to service providers and cloud customers across the board.

Transaction and approval details
Under the terms of the agreement, which was unanimously approved by the boards of directors of HPE and Juniper, Juniper shareholders will receive $40 per share upon completion of the transaction.