The acquisition, HPE says, will advance its portfolio mix shift toward higher-growth solutions and strengthens its high-margin networking business, accelerating its sustainable profitable growth strategy.
It is expected to double HPE’s networking business, diversifying its portfolio for existing customers.
The company says it has been aligning its portfolio to capitalise on substantial IT trends such as the explosion of AI and increasing hybrid cloud-driven business demand.
“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,” Antonio Neri, president and CEO of HPE.
“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.
“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.”
Upon completion of the deal, Rami Rahim, Juniper’s CEO will lead the combined 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. We look forward to working with the talented HPE team to drive innovation for enterprise, service provider and cloud customers across all domains, including campus, branch, data centre and the wide area network.”
The deal is expected to close in late 2024 or early 2025, subject to regulatory approvals.
