The deal, which offers a 32% premium over Juniper's closing price on January 8, could close later this year or early next, assuming no regulatory objections. Despite the initial investor reaction, the companies believe the numbers look good and match up well, provided HPE doesn't mishandle the integration. The companies are positioning AI as the centerpiece of this deal, a common trend in the tech industry.
Key takeaways:
- HPE announced its intention to acquire Juniper Networks for $14 billion, a move that surprised many as it was not positioned as a pure networking play.
- Juniper CEO Rami Rahim suggested the acquisition was more about AI, aiming to deliver more comprehensive, competitive, AI-native solutions.
- Since the deal was announced, HPE investors seem lukewarm about it, with the stock price dropping almost 8% for the month.
- The companies are positioning AI as the centerpiece of this deal, but it remains to be seen if this focus is accurate or just a trend in tech.