HPE to buy Juniper Networks for $14 bn in expansion bet?

Hewlett Packard Enterprise Co. has reached an agreement to acquire Juniper Networks Inc. for $14 billion, aiming to expand its presence in networking, but invited mistrust from Wall Street.

Following the announcement, HPE’s CEO, Antonio Neri, highlighted that networking, enabling information flow between devices and across the internet, will become the focal point of HPE. The company anticipates this business segment to double in scale upon the completion of the deal.

HPE said it will finance the purchase with term loans that over time will be replaced “with a combination of new debt, mandatory convertible preferred securities, and cash.” The companies expect the acquisition, which has been approved by both boards, to be completed by late this calendar year or early 2025.

Juniper, like its bigger rival Cisco Systems Inc., makes networking devices such as routers and switches. The HPE-Juniper combination will disrupt the industry since “there has been only one large vendor,” Neri said, referring to Cisco. “Today we are actually creating a second option — a much more modern option that ultimately customers were looking for.”

In an interview, Juniper CEO Rami Rahim expressed that the companies’ collaboration will excel in constructing data centres and managing AI-driven operations. Rahim is set to oversee the unified networking business and will report to Neri once the deal concludes, as per both companies’ statements.

Before the deal announcement, Bloomberg Intelligence analyst Woo Jin Ho noted that the merger will assist HPE in addressing a void in its portfolio, broadening its footprint in data centre and cloud networking.

Partner Resources

Popular Right Now

Edgecore Insight Podcast

Ep-1: Navigating the Waters of Sustainability

Others have also read ...