Hewlett Packard Enterprise (HPE) is likely to obtain unconditional approval from the European Commission (EC) for its previously announced $14bn acquisition of artificial intelligence (AI)-native networks developer Juniper Networks. Sources told Reuters that the European Union (EU)’s competition regulator, which set a deadline of 1 August 2024 to decide whether to block or accept the deal, is likely to give consent to the proposed merger, citing undisclosed sources with knowledge of the matter.
HPE was expected to highlight the market leadership of Juniper Networks’ rival Cisco to address potential EU competition concerns, according to the news agency. Announced at the beginning of this year, the all-cash deal is expected to enable the firm to accelerate AI-driven innovation.
Juniper expansion intended to shore up HPE AI expertise
Under the terms of the agreement, shareholders of the New York Stock Exchange (NYSE)-listed Juniper Networks will be paid $40 per share. Juniper Networks offers a portfolio of cloud-delivered networking solutions, software, and services, including the Mist AI and Cloud platform. These offerings assist organisations in securely and efficiently accessing the mission-critical cloud infrastructure that is essential for their digital and AI strategies.
HPE’s proposed deal with Juniper Networks is expected to enhance its portfolio by emphasising higher-growth solutions and bolstering its high-margin networking business. In addition, the firm hopes the acquisition will also boost its sustainable profitable growth strategy, as well as double its networking business. It is also said to establish a new networking leader with a comprehensive portfolio, providing customers and partners with a compelling new choice for driving business value.
HPE’s proposed merger with Juniper Networks is also being assessed by the UK’s antitrust enforcer Competition and Markets Authority (CMA). The CMA’s decision is due on 14 Aug 2024. Earlier this month, HPE announced that it will develop a new supercomputer powered by Nvidia for Japan’s research institution National Institute of Advanced Industrial Science and Technology (AIST).
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