- HPE’s $14 billion acquisition of Juniper Networks has now completed
- EU and UK approval came quickly, US approval not so much
- The networking business could account for 50% of revenue
More than 18 months after HPE initially disclosed plans to acquire Juniper Networks, and several regulatory hurdles later, the merger has now been completed.
With Juniper’s shares ceasing trading on the NYSE and HPE’s networking business set to double, HPE hopes the $14 billion acquisition will allow it to focus on higher-margin, higher-growth areas, creating “long-term profitable revenue growth.”
The news comes shortly after the US Department of Justice approved the merger, subject to two key conditions which require HPE to divest its Instant On business and auction a license for Juniper’s AI Ops for Mist source code.
HPE-Juniper merger is now complete
“In addition to positioning HPE to offer our customers a modern network architecture alternative and an even more differentiated and complete portfolio across hybrid cloud, AI, and networking, this combination accelerates our profitable growth strategy as we deepen our customer relevance and expand our total addressable market into attractive adjacent areas,” HPE CEO Antonio Neri commented.
Juniper Networks CEO Rami Rahim described the merger as an, “opportunity to disrupt the networking industry at the most important and relevant time.”
HPE noted that the merger aligns with its vision for customers to access silicon, hardware, operating system, security, software and services all in one place.
Looking ahead, HPE envisions the combined networking business to contribute to more than half of the company’s entire operating income, which stood at $7.6 billion, up 6%, in its most recent quarter.
Despite some conditions imposed by the DOJ, HPE was quick to gain approval from the European Commission, which found “no competition concerns in the European Economic Area” nearly a year ago. Just a couple of weeks later, the UK’s Competition and Markets Authority also granted approval to the deal.
