Posted by Bengaluru: HPE’s networking business doubles after the company announced the completion of its $14 billion Juniper Networks acquisition on Tuesady.
The Juniper Networks acquisition doubles the size of HPE’s networking business and provides customers with a comprehensive portfolio of networking solutions. It also expands the company’s portfolio mix shift to higher-margin, higher-growth areas and positions HPE for long-term profitable revenue growth.
“Today begins a new era for HPE – we are now at the epicentre of the transformation of IT, where AI and networking are converging,” HPE President and CEO Antonio Neri, said in a press statement.
Besides, offering a modern network architecture alternative and an even more differentiated and complete portfolio across hybrid cloud, AI, and networking to customers, according to Neri, this HPE-Juniper combination drives the profitable growth strategy.
“As we deepen our customer relevance and expand our total addressable market into attractive adjacent areas. We look forward to welcoming the Juniper team to HPE,” added Neri.
“HPE and Juniper have a unique opportunity to disrupt the networking industry at the most important and relevant time,” said Rami Rahim, former CEO of Juniper Networks, who will now lead the combined HPE Networking business. “Together, we’ll be able to provide customers and partners with a secure network that is purpose-built with AI and for AI.”
HPE’s networking business and market position
Over all the Juniper Networks acquisition propels HPE’s strategic vision with a full networking IP stack from silicon to software and services, with a cloud-native and AI-driven approach.
This integration is expected to drive customers’ deployment and adoption of both hybrid cloud and AI as the deal brings combined capabilities of HPE and Juniper to customers. They will have access to HPE’s full portfolio offering across networking, hybrid cloud, and AI, along with Juniper’s data centre and AI-native solutions.
From HPE’s perspective, Juniper buyout bolsters its position as a networking leader. It not only doubles the size of HPE’s networking business but increases its scope and total addressable market. The combined company will reach large adjacent markets, including data centre, firewalls, and routers.
The transaction creates revenue growth opportunities, as Juniper offerings benefit from HPE’s large, global go-to-market model and team. Even for HPE shareholders this deal is expected to offer strong value.
This deal’s high margin business is expected to be accretive in the near- and long-term for the combined company. The deal will be accretive to non-GAAP EPS in year 1, post close, with the combined networking business contributing more than 50% of total company operating income.
Juniper Network acquisition was originally announced on January 9, 2024, and was approved by the company’s shareholders on April 2, 2024. With the completion of the transaction, shares of Juniper’s common stock, which traded on the NYSE under the symbol “JNPR,” will cease trading as of 1 July, and will no longer be listed on the NYSE.