Hewlett Packard Enterprise (NYSE: HPE) has agreed to acquire Juniper Networks (NYSE: JNPR) in an all-cash transaction valued at approximately $14 billion, or $40 per share, as part of efforts to expand its networking business in response to the increasing adoption of artificial intelligence tools and hybrid cloud platforms.
Upon the deal’s closing, Juniper CEO Rami Rahim will report to Antonio Neri, president and CEO of HPE, and oversee the combined networking business, according to a joint release published Thursday.
“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.
The deal could also help HPE expand its presence in data center networking, routers and firewalls, among other adjacent segments.
Post-close, the transaction is expected to be accretive to non-GAAP earnings per share and free cash flow in the first year and record $450 million in operating efficiencies and run-rate annual cost synergies within three years.
Both parties expect the deal to close by late 2024 or early 2025, subject to approval by Juniper shareholders, regulatory clearances and other customary closing conditions.
J.P. Morgan Securities and Qatalyst Partners serve as financial advisers to HPE, while Wachtell, Lipton, Rosen & Katz, Covington & Burling and Freshfields Bruckhaus Deringer act as legal advisers to HPE.
Goldman Sachs & Co. and Skadden, Arps, Slate, Meagher & Flom, respectively, serve as exclusive financial adviser and legal counsel to Juniper.
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