Hewlett Packard Enterprise (HPE) has announced its intention to acquire Juniper Networks, in a deal worth $14bn.
The acquisition aims to bolster the company’s high-margin networking business, which, according to HPE, will double in size. HPE and Juniper Networks regard the deal as a way to meet the demands of artificial intelligence (AI) and hybrid cloud-driven business, which require secure, unified technology that is able to connect, protect and analyse companies’ data from edge to cloud.
According to HPE and Juniper Networks, the complementary product portfolios will supercharge HPE’s edge-to-cloud strategy with an ability to lead in an AI-native environment based on a foundational cloud-native architecture.
HPE and Juniper sees the combination of Juniper’s Mist AI and Cloud platform with HPE Aruba Networking and its AI interconnect fabric as an opportunity to bring together enterprise reach, and cloud-native and AI-native management and control, for modernising and optimising networking for hybrid cloud and AI.
HPE said networking will become the new core business and architecture foundation for its Hybrid Cloud and AI products, which are delivered through the HPE GreenLake hybrid cloud platform.
HPE and Juniper also see an opportunity to collect, analyse and act on aggregated telemetry across a broader installed base to improve user experiences and streamline network operations for HPE and Juniper Networks customers.
Through the acquisition, HPE hopes to address new business opportunities in datacentre networking, firewalls and routers. According to HPE and Juniper Networks, the deal also provides a way for Juniper Networks to grow its footprint among datacentres and cloud providers.
Upon completion of the transaction, Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to HPE president and CEO Antonio Neri.
“HPE’s acquisition of Juniper represents an important 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 toughest demands,” said 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.
“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,” he added.
Rami Rahim, CEO of Juniper Networks, said: “Our multi-year focus on innovative secure AI-native solutions has driven Juniper Networks’ outstanding performance.
“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. In addition, this combination maximises value for our shareholders through a meaningful all-cash premium.
“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, datacentre and the wide area network,” he said.