15 January 2024
Hewlett Packard Enterprise (HPE) plans to buy Juniper Networks for $14 billion in an all-cash deal, to augment the company's AI offerings, says Reuters. HPE offered $40 per share to Juniper shareholders..png?lu=973)
The acquisition comes as the AI gold rush has led companies to pour billions of dollars into upgrading and developing new wares and is expected to double HPE's networking business.
HPE is grappling with sluggish demand in its traditional server business, and is now looking to tap into Juniper's offerings such as network security and AI-enabled enterprise networking operations (AIOps).
Weak demand from inflation-hit wireless carriers and cable operators, as well as stiff competition from Cisco Systems and Nvidia in the networking space has been a drag on Juniper.
The transaction is expected to be funded through financing commitments for $14 billion in term loans and is likely to close in late 2024 or early 2025, subject to regulatory approvals.
