HPE has confirmed a multi-billion dollar deal to buy Juniper Networks as it looks to boost its AI ambitions.
As reported earlier this week, the deal between HPE and Juniper Networks would not only be the first major acquisition of 2024, but also one of the tech sector’s most valuable acquisitions in recent years, highlighting the importance of machine learning and AI for the large companies underlined. players on the market.
In its press release announcing the news, HPE noted that the deal would help “accelerate AI-driven innovation” as well as double its networking business.
HPE-Juniper deal
“The combination of HPE and Juniper accelerates HPE’s portfolio mix shift toward higher growth solutions and strengthens its high-margin networking business, accelerating HPE’s sustainable profitable growth strategy,” the company added.
Networking will be a key focus of the deal, with current Juniper CEO Rami Rahim set to lead the newly combined HPE networking business, which the companies say they will work on, “delivering AI-native networking of the next generation and enabling new digital experiences through secure, intelligent connectivity.”
“HPE’s acquisition of Juniper represents a major turning 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,” said Antonio Neri, president and CEO of HPE.
“This transaction will strengthen HPE’s position at the intersection 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 adding significant generate value for shareholders. . I am excited to welcome Juniper’s talented employees to our team as we bring together two companies with complementary portfolios and proven track records of driving innovation within the industry.”
HPE, best known for its cloud offerings, was spun off from parent company HP in 2015, with the latter focusing on its well-known hardware portfolio that includes PCs, laptops, printers and other computer accessories.
Founded in 1996, Juniper Networks has grown rapidly over the decades thanks to its successful range of networking products, including routers, switches and security products, which have become commonplace among technology and telecom companies around the world.
But the company also runs Mist AI, the increasingly popular AI and machine learning company, which has been working to use the technology to improve and optimize wireless access for users around the world.
“Our long-standing focus on innovative, secure AI-native solutions has led to Juniper Networks’ outstanding performance,” said Rahim. “We have successfully delivered exceptional user experiences and simplified operations, and by joining HPE I believe we can accelerate the next phase of our journey. Furthermore, this combination maximizes value for our shareholders through a meaningful cash premium. We look forward to working with the talented HPE team to drive innovation for enterprises, service providers and cloud customers across all domains, including campus, branch, data center and the wide area network.”
The deal is expected to close in late 2024 or early 2025, subject to regulatory and shareholder approval.