HPE and Juniper Networks agree $21b takeover
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The news: Hewlett Packard Enterprise (HPE) and Juniper Networks have entered an agreement which will see HPE acquire Juniper in an all-cash deal, with an equity value of approximately USD14 billion ($21 billion).
The numbers: Cloud services provider HPE, formed in 2015 following the split of the Hewlett Packard company, offered USD40 per share to Juniper shareholders, representing a 32.4% premium to the stock's close on Monday.
The context: HPE and Juniper said in a joint statement that the companies expect the acquisition to double HPE's high-margin networking business, creating a new networking leader. Juniper, which sells network services and gear, while also running a growing artificial intelligence company called Mist, will boost HPE's offerings including network security and AI-enabled enterprise networking operations, the companies said.
What they said: HPE President and CEO Antonio Neri said in the statement: “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.”
“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.”
The source: HPE Media Release
