Eye On AI: HPE To Acquire Juniper Networks For $14 Billion

Technology major Hewlett Packard Enterprise Development LP have agreed to acquire artificial intelligence-native networks provider Juniper Networks Inc. in an all-cash transaction of $40 per share, valuating the deal at around $14 billion.

Juniper's acquisition would help advance its portfolio mix towards higher-growth solutions and strengthen its networking business, accelerating its sustainable profitable growth strategy, HPE said. The acquisition is expected to double HPE's networking business and help drive business value.

The growth of AI and hybrid cloud-driven business is accelerating demand for secure, unified technology solutions that connect, protect and analyse companies' data from edge to cloud. These technologies will be the most disruptive workloads for companies, and HPE has been aligning its portfolio with these IT trends with networking as a connective component.

HPE said the combined portfolios of the two companies would help drive its edge-to-cloud strategy and strengthen its capabilities in an AI-native environment based on a foundational cloud-native architecture, according to a release dated Jan. 9.

Together, HPE and Juniper will provide enterprises a broader portfolio that allows them to manage and simplify their connectivity needs. Leveraging AI, the combined company is expected to create better user and operator experiences, benefitting enterprises' high-performance networks and cloud data centres.

Through its suite of cloud-delivered networking solutions, software and services, Juniper helps organisations securely and efficiently access cloud infrastructure that serves as the foundation of digital and AI strategies. The combination with HPE Aruba Networking and HPE AI will enhance enterprise reach and improve cloud-native and AI-native management and control, which will help deliver networking optimised for hybrid cloud and AI, HPE said.

Juniper Chief Executive Officer Rami Rahim will lead the combined HPE networking business, reporting to HPE President and Chief Executive Antonio Neri

"“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," Neri said.

HPE said that networking will become the new core business and architecture foundation for its hybrid cloud and AI solutions delivered through the GreenLake platform. The acquisition will help HPE explore segments such as data centre networking, firewalls and routers, and also grow Juniper's footprint in data centres and cloud providers.

"We look forward to working with the talented HPE team to drive innovation for enterprise, service provider and cloud customers across all domains, including campus, branch, data centre and the wide area network," Rahim said.