HPE and Juniper, the second- and third-largest providers of enterprise-grade WLAN solutions in the U.S., plan to contest the lawsuit, arguing that the DoJ's analysis is flawed. They assert that the merger would enhance competition by combining complementary offerings and creating a stronger competitor against global incumbents like Cisco Systems Inc. The companies believe the acquisition will lead to greater innovation and choice for customers, ultimately strengthening the U.S. networking infrastructure. Despite the DoJ's concerns, HPE and Juniper maintain that the merger will benefit the market and consumers.
Key takeaways:
- The U.S. Department of Justice sued to block Hewlett Packard Enterprise's proposed $14 billion acquisition of Juniper Networks due to competition concerns in the WLAN market.
- The DoJ argues that the merger would eliminate competition, raise prices, reduce innovation, and violate the Clayton Act.
- HPE and Juniper plan to defend the transaction, claiming it will enhance competition and strengthen U.S. networking infrastructure.
- The DoJ claims the merger would result in two companies controlling over 70% of the U.S. enterprise-grade WLAN market, reducing competition.