Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation. Photo courtesy of HPE

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.

Elizabeth Gerbel, CEO and founder of Houston-based E.A.G. Services Inc., shares how to navigate M&A activity for both startups and large companies. Pexels

All is not lost in a merger or acquisition, says this Houston energy exec

Guest column

Nervous about an upcoming merger or acquisition? You're not alone. Last year, there were nearly 15,000 mergers and acquisitions in the U.S., according to the Institute for Mergers, Acquisitions and Alliances. These transactions, although executed with optimistic intentions, don't always work out. What is it that separates those that deliver from those whose results simply fall flat?

While you won the legal battle, the real culprit to a failed merger or acquisition transaction lies in post-deal activities such as integrating the divesting company's assets into the acquiring company's existing systems, processes, and organizational structure. If executed poorly, companies could face several hurdles, including:

Increased acquisition costs
Loss in previously efficient business processes
Reduced data quality in current and acquired assets
Extended TSA timeline

With the stakes being high, it is critical for each step of a merger or acquisition to be rock solid before moving on to the next stage. In fact, when executed successfully, an M&A transaction can significantly benefit both companies — from startups to well-established corporations.

A strategy for M&A data integration

In order to facilitate efficient and effective merger or acquisition, the critical success factors focus on these driving goals: Minimizing organizational disruption and Maximizing ROI. To achieve these goals, we execute three main stages for every merger and acquisition.

Planning
Analysis
Execution

We start with thorough planning, think of planning as the foundation for a successful merger or acquisition. Without a good plan, the company will be vulnerable to all sorts of structural weaknesses. To prevent key elements from falling through the cracks, companies must define objectives and data requirements, maintain strong communications, and develop both short-term and long-term expectations.

The next step – analysis – since data is absolutely essential in mergers and acquisitions. There is a lot to watch out for: What's the best way to extract and convert the acquired data? Will IT or business support need to be permanently added? What system configuration changes are required? What are the impacts to current business processes and internal audit controls? Will additional training be required? The answers to these questions are highly individualized to each merger and acquisition, and they'll impact how seamless the transition will be. Many people gloss over this stage but then realize the criticality not only in the case of a merger or acquisition but also in the case of a future divestiture.

Finally, the last stage: Execution. This stage is one of the main reasons why some mergers and acquisitions may fall short of expectations. To avoid common issues stemming from poor execution – including disruption of previously effective business processes, impaired customer service, and increase in the cost of the merger or acquisition – we coordinate roles and responsibilities, ensuring that all key tasks are executed. From day one to full integration, we continually monitor to ensure the company is on track to meet its initially defined objectives.

The risks and benefits of a merger or acquisition

I'll be candid: Without a solid foundation through adequate preparation, a merger or acquisition is set up to fail. This risk can be higher for startups and small companies, which don't have the resource buffer that some larger firms can fall back on. Large companies may face a different risk, business processes and data may not be aligned with their current state. And yet, according to Economy Watch, an extensively strategized merger or acquisition transaction, beyond increasing the company's size, can yield significant benefits that include:

Improving its strategic position
Entering a new market
Developing new assets
Lowering operational costs
Expanding market influence

For smooth mergers and acquisitions, we recommend a multi-step process so that you can identify and reduce risks, condense your integration timeline, and quickly capture value. Because despite the challenges, not all is lost during a merger or acquisition – and there is much to be gained.

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Elizabeth Gerbel is the CEO and founder of Houston-based E.A.G. Services Inc.

International beauty giant Shiseido Company Ltd. has acquired Houston-founded Drunk Elephant. Photo via Business Wire

Houstonian's skincare line acquired for $845 million

A beautiful acquisition

A skincare line with ties to Houston is joining the ranks of other popular beauty brands this week. International beauty giant Shiseido Company Ltd. has announced that it is acquiring Drunk Elephant in a reported $845 million deal.

Houstonian Tiffany Masterson, chief creative officer, founded the company in Houston in 2012. The quality of products and playful branding attracted a broad range of demographics as the company experienced exponential growth.

"I started this business as an industry outsider, and from the beginning I did things a little differently," Masterson says in a news release. "To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most importantly an unwavering commitment to the consumer. I chose a partner who will let the brand continue to be itself, with the same formulations and the same team."

According to the release, the acquisition will allow Drunk Elephant's products to expand more throughout America, and enter new markets in Asian and Europe. The new subsidiary will also have support from Shiseido's Global Innovation Center and Digital Center of Excellence.

"This transaction is squarely aligned with Shiseido's VISION 2020 goal of accelerating growth and creating value through strategic partnerships," says Masahiko Uotani, president and CEO of Shiseido, in a news release. "I am very pleased to welcome Tiffany and the Drunk Elephant team to the Shiseido Family and together, pursue our long-term mission of 'Beauty innovations for a better world.'"

Masterson will maintain her role as chief creative officer and add the title of president for the company. She will report to Marc Rey, CEO of Shiseido Americas and chief growth officer of Shiseido.

"Drunk Elephant is built on a strong brand foundation and a unique philosophy that fits perfectly with Shiseido's values and skincare heritage," Rey says in the release. "Our innovative and people-first cultures are well aligned, and we share an unwavering commitment to our consumers. I also believe the brand will contribute to the business performance of Shiseido Americas."

The beauty industry is having a bit of a moment right now as consumers — who have shelves and shelves of products to choose from — are drawn to specific products.

"While reasons for acquisitions in the beauty space vary, we are seeing that some of the big players are seeking to balance their portfolios by creating products and services that consumers find relevant," says Laura Gurski, Accenture's global lead for consumer goods and services, in a statement.

"It is crucial that brands completely reinvent the beauty experience, making it much more than a transactional event," she continues. "This is what startups and disruptors do best. They create a collaboration with each consumer, allowing them to participate and experience products, services and brands in new ways."

According to Accenture Strategy's research on M&A in consumer goods, companies acquiring new capabilities represents 47 percent of activity and new technologies represents 35 percent of activity. These figures are on par with more traditional reasons for M&A, like new industries (43 percent) and new geographic markets (37 percent).

"For the first time, beauty companies have the opportunity to achieve real differentiation by taking their relationships with consumers to a completely new level," Gurski says.

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TMC med-tech company closes $2.5M series A, plans expansion

fresh funding

Insight Surgery, a United Kingdom-based startup that specializes in surgical technology, has raised $2.5 million in a series A round led by New York City-based life sciences investor Nodenza Venture Partners. The company launched its U.S. business in 2023 with the opening of a cleanroom manufacturing facility at Houston’s Texas Medical Center.

The startup says the investment comes on the heels of the U.S. Food and Drug Administration (FDA) granting clearance to the company’s surgical guides for orthopedic surgery. Insight says the fresh capital will support its U.S. expansion, including one new manufacturing facility at an East Coast hospital and another at a West Coast hospital.

Insight says the investment “will provide surgeons with rapid access to sophisticated tools that improve patient outcomes, reduce risk, and expedite recovery.”

Insight’s proprietary digital platform, EmbedMed, digitizes the surgical planning process and allows the rapid design and manufacturing of patient-specific guides for orthopedic surgery.

“Our mission is to make advanced surgical planning tools accessible and scalable across the U.S. healthcare system,” Insight CEO Henry Pinchbeck said in a news release. “This investment allows us to accelerate our plan to enable every orthopedic surgeon in the U.S. to have easy access to personalized surgical devices within surgically meaningful timelines.”

Ross Morton, managing Partner at Nodenza, says Insight’s “disruptive” technology may enable the company to become “the leader in the personalized surgery market.”

The startup recently entered a strategic partnership with Ricoh USA, a provider of information management and digital services for businesses. It also has forged partnerships with the Hospital for Special Surgery in New York City, University of Chicago Medicine, University of Florida Health and UAB Medicine in Birmingham, Alabama.

2 Houston suburbs named among 10 best places to live by U.S. News & World Report

Where to Live

The Houston suburbs of Pearland and League City have landed among the top 10 best places to live in 2025, according to U.S. News & World Report.

New for the 2025-2026 "Best Places to Live in the U.S." rankings, U.S. News expanded its coverage from 150 to 250 U.S. cities, and updated its methodology to examine each city based on five livability indexes: Quality of life, value, desirability, job market, and net migration.

Pearland ranked No. 3 nationwide, earning a 7.0 score alongside No. 1-winning Johns Creek, Georgia and No. 2 winner Carmel, Indiana.

Pearland also landed on top of U.S. News separate rankings of the best places to live in Texas for 2025-2026.

Some facts about Pearland that put it at the top of the list include its median household income ($115,504), its median home values ($319,753), and its bustling population of nearly 124,000 residents.

Housing costs in Pearland are extremely attractive compared to other places in the country, as the national average home is worth over $370,000. It's no wonder this Houston neighbor has been adding more high-income households than many other places in Texas.

Pearland's population is a healthy mix of young individuals and families, with 29 percent of residents under 20 years old and 36 percent of the population between the ages of 20-44. Nearly a quarter of Pearland's population is between 45-64-years-old, while only 12 percent of residents are over 65, the report says.

Pearland's reputation as one of the safest cities in America is also boosting its community appeal.

Pearland's Pear-Scape Trail is a popular public art trail that residents, families, and visitors can enjoy. The sculptures are scattered all over the city.City of Pearland - Government/Facebook

"Finding a community to be part of can play a major role in making a place feel like home," U.S. News said. "If you’re a parent with young children, you may want to live in a neighborhood with other people in that phase of life. If you’re a professional moving to a hot job market for your field, you may want to live in an apartment close to the office or within walking distance of friends and colleagues."

Pearland also enjoys a better job market than other cities, the report added. Pearland's unemployment rate as of 2023 was only 3.6 percent, lower than the national average unemployment rate of 4.5 percent.

However, if people are looking for a public transportation-friendly city, they may need to look elsewhere. Almost all commuters in Pearland drive to their workplaces, making access to a vehicle absolutely necessary for living in the suburb. Pearland's 31.2-minute average commute time is also 9.2 minutes higher than the national average, U.S. News said.

Other Houston-area suburbs

League City ranked three spots behind Pearland as the 6th best place to live in the U.S., and No. 2 in Texas. The city boasts a median household income of $120,670, and affordable median home values at $327,511.

Workers in League City also predominantly rely on vehicles for their daily commutes, and only 3.7 percent of the population use public transport to get to work. Commuters spend an average time of 27.5 minutes driving to work, U.S. News determined.

More than half (63.5 percent) of all League City residents are married, and 54 percent of the population are between the ages of 25 and 64-years-old.

Here's how other Houston-area cities faired among the top 100:

No. 16 – Sugar Land
No. 44 – The Woodlands
No. 45 – Katy
No. 67 – Missouri City
No. 73 – Spring

Houston drops out of the top 100

Though Houston proper made substantial improvements to land among the top 100 best places to live in U.S. News' 2024-2025 report, the city has once again plummeted toward the bottom of the list for 2025-2026.

Houston slumped to No. 381 this year, and only ranked No. 63 in the statewide comparison, showing that the city has lost its charm in favor of its appealing suburban neighbors.

The top 10 best places to live in the U.S. are:

No. 1 – Johns Creek, Georgia
No. 2 – Carmel, Indiana
No. 3 – Pearland, Texas
No. 4 – Fishers, Indiana
No. 5 – Cary, North Carolina
No. 6 – League City, Texas
No. 7 – Apex, North Carolina
No. 8 – Leander, Texas
No. 9 – Rochester Hills, Michigan
No. 10 – Troy, Michigan

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This story originally appeared on CultureMap.com.

9 can't-miss Houston business and innovation events for June

where to be

Editor's note: From lightning pitches to a female-focused AI summit and energy conferences, there's still plenty to do as Houston settles into the summer. Here are the Houston business and innovation events you can't miss in June and how to register. Please note: this article might be updated to add more events.

June 3 – Founders Live Houston

Watch five Houston founders present their 99-second pitches at Founders Live Houston. Competing teams include AyeDu (Vinita Gupta), Omniscale (Tony Hernandez-Ferman), AnswerPath (Chris Mullins), Katana.video (Sam Bhattacharyya) and TraceWrap (Laketta B.).

This event is Tuesday, May 3, at 5:30 p.m. at the Ion. Register here.

June 4 – Center for Human Performance Research & Networking Event

Rice University and Houston Methodist's Center for Human Performance will host an event to support its work in the study of exercise physiology, injury prevention and rehabilitation. The organizations will share more information on seed grant opportunities, and the event will feature presentations from Rice and Houston Methodist leaders, networking sessions and a poster showcase.

This event is Wednesday, June 4, from 3-5:30 p.m. at the BioScience Research Collaborative at Rice University. Register here.

June 12 – Transition on Tap

Meet and hear lighting pitches from eight of Greentown Labs’ newest startup members. Attendees can network with entrepreneurs, investors, corporate leaders, philanthropists, students and other climate champions. Georgina Campbell Flatter, CEO of Greentown Labs, and Victor Martinez, Greentown's memberships manager, will also speak.

This event is Thursday, June 12, from 5:30-7:30 p.m. at Greentown Houston. Register here.

June 16-18 — Energy Drone & Robotics Summit

This three-day summit, the largest of its kind, will connect 1,500-plus leaders in the global energy/industrial robotics, drone and data sectors. Attendees will glean the latest ideas, use cases, best practices, tech and trends from a wide variety of robotics and drone industry experts.

This event begins June 16 at Woodlands Waterway Marriott. Register here.

June 17 – SGSF’s #SUPERGirlsInSTEM Summit, The Intersection of AI & Workforce

SUPERGirls SHINE Foundation is hosting a one-day summit for women ages 18-24 focused on the evolving intersection of AI and the STEM workforce. The conference will feature keynote speakers, panel discussions and hands-on workshops.

This event is Tuesday, June 17, from 9 a.m.-1 p.m. at the Ion. Register here.

June 18 – 2025 Obsidi BNXT: Juneteenth Tech Forum

Obsidi.com, an online platform launched by the Black Professionals in Tech Network (BPTN), will host a forum for high-performing Black and allied tech executives. The event offers networking opportunities, keynotes and panels that feature executives from Echelon Health Partners, Hewlett-Packard Enterprise, SAP, Intuit and more.

The event is Wednesday, June 18, at NRG Center. Register here.

June 24 — Houston Methodist Leadership Speaker Series

Head to the Houston Methodist Tech Hub at Ion to hear the latest installment of the Houston Methodist Leadership Speaker Series. Trent Fulin, vice president and CEO at Houston Methodist Cypress Hospital, will discuss the new 105-acre campus and its first 100 days of patient care, followed by a Q&A.

This event is Tuesday, June 23, from 4:45-6 p.m. Register here.

June 25-26 – Carbon Capture Technology Expo and Hydrogen Technology Conference & Expo North America

Tackling climate change is one of the biggest global challenges that requires immediate action, and many industrial sectors are now looking to new technology to help meet net-zero emission targets. The Carbon Capture Technology Expo is North America's leading event for carbon capture, utilization and storage. The expo offers opportunities to network with industry frontrunners and best-in-class solution providers.

This event begins June 25 at NRG Center. Click here to register. It is co-located with the Hydrogen Technology Conference & Expo North America. Expo passes are free.

June 26 – NASA Tech Talk

Every fourth Thursday of the month, NASA experts, including longtime engineer Montgomery Goforth, present on technology development challenges NASA’s Johnson Space Center and the larger aerospace community are facing and how Houston’s innovation community can leverage them. Stick around after for drinks and networking at Second Draught.

This event is Thursday, June 26, from 6-7 p.m. at the Ion. Register here.

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