Juniper Networks offers a suite of cloud-delivered networking solutions, software, and services, including the Mist AI and Cloud platform, which assist organisations in securely and efficiently accessing the mission-critical cloud infrastructure that forms the foundation of their digital and AI strategies
Hewlett Packard Enterprise (HPE) has agreed to acquire Juniper Networks, a developer of artificial intelligence (AI)-native networks, in an all-cash deal worth around $14bn.
Juniper Networks provides a suite of cloud-delivered networking solutions, software, and services, including the Mist AI and Cloud platform. These offerings assist organisations in securely and efficiently accessing the mission-critical cloud infrastructure that forms the foundation of their digital and AI strategies.
HPE said that its combination with Juniper Networks enhances its portfolio by emphasising higher-growth solutions and bolstering its high-margin networking business. This move is expected to accelerate HPE’s sustainable profitable growth strategy.
Anticipated to double HPE’s networking business, the acquisition is said to establish a new networking leader with a comprehensive portfolio, providing customers and partners with a compelling new choice for driving business value.
The integration of Juniper Networks’ offerings with HPE Aruba Networking and purposefully designed HPE AI interconnect fabric combines enterprise reach, cloud-native, and AI-native management and control. This synergy positions the enlarged company as a premier industry player, accelerating innovation to deliver modernised networking streamlined for hybrid cloud and AI.
HPE president and CEO Antonio Neri said: “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.”
As per the terms of the agreement, shareholders of the New York Stock Exchange (NYSE)-listed Juniper Networks will be paid $40 per share. The terms have been approved unanimously by the boards of directors of both firms.
The consideration reflects a premium of around 32% compared to the unaffected closing price of Juniper Networks’ common stock on 8 January 2024, the last full trading day before media reports surfaced about a potential transaction.
Post-acquisition, Juniper Networks’ CEO Rami Rahim will head the enlarged HPE networking business and will report to Neri.
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.”
The completion of the transaction is anticipated in the latter part of the calendar year 2024 or the early part of the calendar year 2025. This is contingent upon obtaining regulatory approvals, approval of the transaction by Juniper shareholders, and fulfillment of other customary closing conditions.
HPE has enlisted J.P. Morgan Securities and Qatalyst Partners as its financial advisers, while legal counsel is provided by Wachtell, Lipton, Rosen & Katz, Covington & Burling, and Freshfields Bruckhaus Deringer.
Juniper Networks has Goldman Sachs & Co. as its exclusive financial adviser, and legal counsel is being provided by Skadden, Arps, Slate, Meagher & Flom.