Hewlett Packard Enterprise (HPE) has officially closed its acquisition of Juniper Networks, a leader in AI-powered networking solutions. This strategic move enhances HPE’s ability to offer a comprehensive, cloud-native and AI-driven IT portfolio, addressing the growing demand for hybrid cloud and AI technologies. The acquisition strengthens HPE’s position as a key player in the evolving AI and networking space, providing customers with a full-stack modern networking solution.
The acquisition effectively doubles the size of HPE’s networking business, opening up new opportunities in high-growth, high-margin sectors. This expansion will allow HPE to offer an integrated portfolio that includes networking, security, software, and services, specifically designed to support AI-driven workloads and hybrid cloud environments.
Antonio Neri, President and CEO of HPE, said, “This acquisition marks a pivotal moment in HPE’s growth, placing us at the forefront of the IT transformation, where AI and networking are converging. By combining HPE’s cloud and AI leadership with Juniper’s advanced networking capabilities, we are accelerating our growth strategy and creating a more comprehensive offering for our customers.”
Rami Rahim, former CEO of Juniper Networks and now head of the newly formed HPE Networking business, added, “Together, HPE and Juniper are poised to disrupt the networking industry. With our AI-powered solutions, we can offer customers and partners a secure, purpose-built network designed specifically for the demands of AI.”
The acquisition of Juniper Networks significantly accelerates HPE’s vision of offering a comprehensive networking portfolio, enabling the company to deliver a complete networking IP stack. This includes everything from silicon and hardware to security, software, and services, with a sharp focus on cloud-native and AI-driven technologies. By integrating Juniper’s capabilities, HPE is now better positioned to support customers in their hybrid cloud and AI adoption journeys, empowering them to leverage advanced networking solutions that accelerate their digital transformations.
The deal also strengthens HPE’s leadership in the networking sector, expanding its presence in adjacent markets such as data centers, firewalls, and routers. This expanded footprint enhances HPE’s position as a leader across both traditional networking technologies and emerging AI-native solutions. By combining HPE’s enterprise security-first approach with Juniper’s AI-driven networking expertise, the acquisition positions HPE as a dominant force in the evolving IT landscape.
With this acquisition, HPE is now equipped to offer end-to-end, AI-native networking solutions tailored to address increasingly complex connectivity requirements. This is particularly crucial for managing data-intensive AI workloads. The integration of Juniper’s cutting-edge technologies, along with HPE’s enhanced research and development capabilities, will accelerate innovation and drive more seamless integration across networking systems, ultimately providing more efficient and effective solutions for customers.
Financially, the acquisition is expected to generate strong growth opportunities for HPE. The addition of Juniper’s high-margin business enhances HPE’s revenue potential by tapping into a broader global market. As the combined networking business is projected to contribute over 50% of HPE’s total operating income, the acquisition is anticipated to be accretive to HPE’s non-GAAP earnings per share (EPS) from the first year after closing, delivering significant long-term financial value for shareholders.
The acquisition was initially announced on January 9, 2024, and was approved by Juniper shareholders on April 2, 2024. With the deal now complete, Juniper’s common stock will cease trading on the NYSE under the ticker symbol “JNPR” as of today.
Hewlett Packard Enterprise (HPE) is a global leader in enterprise technology, combining the power of AI, cloud, and networking to help organizations achieve more. By driving innovation, HPE enables customers across industries to optimize operational performance, transform data into insights, and maximize their impact.
