- Hewlett Packard Enterprise (HPE, Financial) completes acquisition of Juniper Networks, doubling its networking business size.
- The acquisition positions HPE to lead the AI and hybrid cloud market with a comprehensive, cloud-native, AI-driven portfolio.
- The move is expected to be accretive to HPE's non-GAAP EPS within the first year.
Hewlett Packard Enterprise (HPE) has announced the completion of its acquisition of Juniper Networks, a significant step that aligns with its strategic vision to expand its presence in the AI and hybrid cloud market. The acquisition, which doubles the size of HPE’s networking business, allows the company to offer a groundbreaking cloud-native and AI-driven IT portfolio.
With this transaction, HPE is set to enhance its portfolio with a complete, secure networking IP stack, enabling customers to deploy and adopt hybrid cloud and AI solutions more effectively. Antonio Neri, CEO of HPE, stated, “Today begins a new era for HPE – we are now at the epicenter of the transformation of IT, where AI and networking are converging.”
Rami Rahim, the former CEO of Juniper Networks, will lead the combined HPE Networking business. He emphasized the unique opportunity for HPE and Juniper to disrupt the networking industry, providing customers with secure, AI-native solutions.
Financially, the acquisition is expected to be beneficial, contributing more than 50% to the total company operating income and is projected to be accretive to HPE’s non-GAAP EPS in the first year post close. This strategic move opens up larger adjacent markets, including data centers and AI-native solutions, broadening HPE’s total addressable market.
The deal, initially announced on January 9, 2024, was approved by Juniper shareholders on April 2, 2024. As part of the transition, Juniper Networks’ stock will cease trading on the NYSE under the symbol “JNPR”.
