HPE to acquire Juniper Networks for US$14 billion

HPE has agreed to acquire Juniper Networks in an all-cash transaction for US$40 per share, representing an equity value of approximately US$14 billion.

HPE said adding Juniper to its portfolio will facilitate a shift toward higher-growth solutions and strengthen its high-margin networking business, which the company expects to double.

Networking will become the new core business and architecture foundation for HPE’s hybrid cloud and AI solutions delivered through the HPE GreenLake hybrid cloud platform. 

The transaction is expected to close in late calendar year 2024 or early calendar year 2025. 

HPE Aruba Networking, HPE's security and networking subsidiary, was mentioned once in the company's statement on the acquisition.

HPE said combining Juniper's solutions "with HPE Aruba Networking and purposely designed HPE AI interconnect fabric will bring together enterprise reach, and cloud-native and AI-native management and control, to create a premier industry player that will accelerate innovation to deliver further modernised networking optimised 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.

“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,” Neri said.

“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.”

Juniper CEO Rami Rahim said: “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 center and the wide area network.”