HPE has confirmed a multibillion-dollar deal to buy Juniper Networks as it looks to boost its AI ambitions.
As reported earlier this week, the HPE-Juniper Networks deal would not only be the first major acquisition of 2024, but also one of the highest-value tech industry acquisitions in recent years, highlighting the importance of learning automatic and artificial intelligence for major companies. players in the market.
In its press release announcing the news, HPE noted that the deal would help “accelerate AI-driven innovation” in addition to doubling its networking business.
Agreement between HPE and Juniper
“The combination of HPE and Juniper drives HPE’s portfolio shift toward higher-growth solutions and strengthens its high-margin networking business, accelerating HPE’s profitable and sustainable growth strategy,” the company added.
Networking will be a major focus of the deal, with current Juniper CEO Rami Rahim leading the newly combined HPE networking business, which the companies say will work to “deliver next-generation AI-native networking and enable “new digital experiences through secure and intelligent connectivity.”
“HPE’s acquisition of Juniper represents a significant inflection 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 most demanding demands,” said Antonio Neri, president and CEO of HPE.
“This transaction will strengthen HPE’s position at the nexus of accelerating macro-AI trends, expand our total addressable market, and drive greater innovation for customers as we help bridge the AI-native and enterprise-native worlds.” the cloud, while generating significant value for shareholders. . “I am pleased to welcome Juniper’s talented employees to our team as we bring together two companies with complementary portfolios and a proven track record 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 spanning PCs, laptops, printers and other computing accessories.
Founded in 1996, Juniper Networks has grown rapidly over the past few decades due to its successful line of networking products, including routers, switches and security products, which have become commonplace in technology and telecommunications companies around the world. world.
But the company also runs Mist AI, its increasingly popular artificial intelligence and machine learning business, which has been working on using the technology to improve and optimize wireless access for users around the world.
“Our multi-year focus on innovative and secure native AI solutions has driven Juniper Networks’ excellent 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. Additionally, this combination maximizes value for our shareholders through a significant cash bonus. “We look forward to working with the talented HPE team to drive innovation for enterprises, service providers and cloud customers across all domains, including campuses, branch offices, data centers and the wide area network.”
The deal is expected to close in late 2024 or early 2025, subject to regulatory and shareholder approvals.
