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Here Are The Keys to Success For HPE’s Juniper Deal

Jan 10, 2024 - forbes.com
Hewlett Packard Enterprise (HPE) has officially announced its acquisition of Juniper Networks for $14 billion, a move that HPE CEO Antonio Neri believes will significantly change the networking market. The deal, which will see HPE finance the purchase by adding $10 billion-$12 billion in debt, has been met with skepticism by shareholders, with HPE shares falling 7% since the announcement. Neri has reassured shareholders that the combination of Juniper's advanced networking and AI technology with HPE's sales channel will create more value over time.

The success of the acquisition will largely depend on the integration of Juniper into HPE's sales channel, a process expected to be completed by the end of 2024. HPE aims to consolidate its position in the networking market and leverage its enterprise sales to sell networking as part of a broader cloud connectivity solution. The deal also marks the end of an era for Juniper, which has long been seen as a reliable second source to market-leading Cisco. Despite the potential job losses due to the merger, the deal represents a short-term financial victory for Juniper's shareholders, with the offer of $40 a share representing a 33.33% premium for the company.

Key takeaways:

  • HPE is acquiring Juniper Networks for $14 billion, aiming to challenge market leader Cisco in the networking market.
  • The deal will be financed by adding $10 billion-$12 billion in debt, which has led to a 7% fall in HPE shares.
  • The success of the acquisition will depend on the integration of Juniper into the HPE sales channel and the ability to leverage Juniper’s networking and AI technology.
  • The deal represents the end of an era for Juniper, which has long been seen as the second source to Cisco in the networking market.
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