IT-based cloud company Hewlett Packard Enterprise (HPE) said it will acquire Juniper Networks, software development firm on Tuesday, in an all-cash deal for $40 per share, valued at about $14 billion.
The collaboration will advance HPE’s portfolio mix shift toward higher-growth solutions and support its high-margin networking business, accelerating its sustainable profitable growth strategy, said the technology solution provider.
The purchase price represents about 32% of the closing price of Juniper’s common stock on January 8, 2024, said the firm. Also, the transaction is expected to close in late 2024 or early 2025.
HPE said the deal expects positive financial growth with non-generally accepted accounting principles (non-GAAP) earnings per share (EPS) and free cash flow in the first year post-close.
The firm said the acquisition is expected to double HPE’s networking business, creating a new networking leader with a comprehensive portfolio that presents customers and partners with a compelling new choice to drive business value.
“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 the Executive Chief of HPE, Antonio Neri.
“Our multi-year focus on innovative, secure AI-native solutions has driven Juniper Networks’ outstanding performance,” said Rami Rahim, CEO of Juniper Networks.
“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,” added Rahim.
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