Posted by California, USA: Enterprise tech giant HPE announced on Tuesday that it has entered into a definitive agreement with Juniper, which will allow HPE to acquire Juniper Networks.
HPE to acquire Juniper Networks
Under the definitive agreement, HPE will acquire Juniper in an all-cash transaction for $40.00 per share, representing an equity value of approximately $14 billion. The acquisition is expected to double HPE’s networking business, creating a new networking leader with a wider portfolio that presents customers and partners with a compelling new choice to drive business value, the company said.
Combined HPE networking business
Post the acquisition, HPE plans to set up a combined HPE networking business, which would be a combination of HPE’s networking subsidiary Aruba Networking and Juniper Networks. Juniper CEO Rami Rahim will lead this combined HPE Networking business and will be reporting to HPE President and CEO Antonio Neri.
Highly complementary combination
HPE called Juniper Networks’ portfolio a highly complementary combination that will enhance secure, unified, cloud and AI-native networking to drive innovation from edge to cloud to exascale.
“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 HPE President and CEO Antonio 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,” added Neri.
“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 maximizes value for our shareholders through a meaningful all-cash premium,” said Rami Rahim, CEO of Juniper Networks.
Juniper Networks reported a total revenue of $5.649 billion for the twelve months ending September 30, 2023, while HPE reported a total of $29.1 billion in revenue for fiscal 2023.
(Image credit: HPE)