Houston-based HPE to acquire cloud infrastructure co. in $14B deal
Hewlett Packard Enterprise is buying Juniper Networks in an all-cash deal valued at about $14 billion, which is anticipated to double HPE's networking business.
Shares of both companies rose before the market open on Wednesday. A Wall Street Journal report about a potential deal saw Juniper's stock surge 22 percent and HPE's stock dip 9 percent before an official announcement was made.
Juniper, based in Sunnyvale, California, helps companies access the cloud infrastructure that serves as the foundation of digital and AI strategies.
“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," HPE President and CEO Antonio Neri said late Tuesday in a statement.
Juniper CEO Rami Rahim will lead the combined HPE networking business. He will report to Neri. HPE was spun off from Hewlett-Packard, one of the founding companies of Silicon Valley, in 2015 and is now based in Houston.
The transaction, which was approved by both companies' boards, is expected to close either later this year or early next year. It still needs approval from Juniper shareholders and regulators.
Last March, HPE announced its plans to acquire OpsRamp, a software-as-a-service company with an IT operations management, or ITOM, platform that can monitor, automate, and manage IT infrastructure, cloud resources, and more.
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