Hewlett Packard Enterprise (HPE) has agreed to take over Juniper Networks for about $14 billion, or $40 per share, in an all-cash transaction.
HPE intends to complete the transaction late this year or early 2025, according to a statement.
Juniper shares enjoyed their greatest day in 20 years, following a Journal report that a deal could be announced this week. The stock rose 22 per cent to settle at $37.05. The purchase price of $40 per share is a 32 per cent premium to Monday’s close before the Journal piece was published.
HPE stated that the transaction would increase its adjusted profits per share in the first year after closing.
Following years of competition, the acquisition would more than double HPE’s existing networking business. If it is completed, Juniper CEO Rami Rahim will manage the combined group and report to HPE CEO Antonio Neri, according to the announcement.
In 2015, Hewlett-Packard expanded its networking portfolio by acquiring Aruba Networks. Months later, HP was divided into two companies: HPE, which sells servers and other data center equipment, and HP Inc., which manufactures personal computers and printers.
HPE stated that adding Juniper to its portfolio will improve profits and accelerate growth.
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