2024-01-10 08:50:28
According to The Wall Street Journal on Monday, HPE was in talks to buy Juniper Network. And yesterday the news was confirmed. HPE acquires Juniper Networks for 14 billion dollars.
HPE, who at first did not comment anything on the matter, Yesterday he noted that the agreement allows him to gain positions in the field of networking enhanced with artificial intelligence. The agreement demonstrates the enormous attractiveness of companies that have something to offer in the field of AI.
The company chaired by Antonio Neri doubles its business in the field of corporate networks. In this way, HPE’s networking business will represent 31% of its total turnover, 13 percentage points more than currently. Additionally, this division will contribute more than half of the company’s operating income.
HPE to pay $40 per share in cash deal, which represents a 32% bonus compared to Juniper’s valuation at the beginning of the week. It must be remembered that Juniper Networks, a historic firm in the world of business connectivity, had a market value on Monday on the Stock Exchange 9,640 million dollars, for the 23,000 million capitalization of HPE.
The purchase could be definitively closed by the end of the year
The purchase operation is expected It will be definitively closed at the end of 2024 or beginning of 2025. Additionally, HPE expects the merger to result in annual cost cuts of $450 million.
Juniper, a provider of network equipment for large companies and also for service providers, competes with the Mist platform, enriched with artificial intelligence, with companies such as Cisco (Meraki) and with HPE Aruba itself, which has the Edge Services Platform. The Juniper platform includes routing, Wi-Fi switching, network security and artificial intelligence-enhanced networking operations (AIOps), as well as software-defined-networking (SDN) technologies.
HPE’s last major purchase was that of Aruba in 2015, for 3,000 million dollars, and that allowed it to address the wireless connectivity market and the management of Wi-Fi environments in companies. At that time, the objective was to compete with more guarantees against Cisco. Now, if the purchase of Juniper goes ahead, HPE will also be strengthened to wage war on the Californian networking giant.
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