PALO ALTO - In a significant move to bolster its cloud services and artificial intelligence capabilities, Hewlett Packard Enterprise (NYSE:HPE) has entered into a definitive agreement to acquire Juniper Networks (NYSE:JNPR) at a purchase price of $40 per share, which equates to an equity value of approximately $14 billion. This strategic acquisition is set to enhance HPE's portfolio by integrating Juniper’s advanced Mist AI technology with the assets of HPE Aruba Networking.
The merger, which is anticipated to be finalized between late 2024 and early 2025, is currently subject to customary closing conditions and regulatory approvals. Once completed, this deal is poised to position HPE as a player in the realm of secure unified cloud services and AI-native networking solutions. The move is seen as a response to the growing IT trends that emphasize artificial intelligence and hybrid cloud environments, with the goal of delivering comprehensive technology solutions that span from edge devices to cloud infrastructure.
Rami Rahim, the current CEO of Juniper Networks, is set to lead the expanded networking sector within HPE after the transaction is completed. The financing strategy for this ambitious acquisition includes securing $14 billion in term loans, alongside plans for future refinancing to manage the investment effectively.
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