DOJ Settles Antitrust Case: HPE's $14 Billion Juniper Acquisition Cleared with AI-Focused Conditions

US DOJ settles antitrust case for HPE's $14 billion takeover of Juniper

June 28 (Reuters) - The U.S. Department of Justice has settled its lawsuit challenging server maker Hewlett Packard Enterprise's (HPE.N), opens new tab all-cash acquisition of Juniper Networks (JNPR.N), opens new tab for $14 billion, according to court filings. The settlement requires the combined company to divest HPE's Instant On wireless networking business and license the source code for Juniper's Mist AI software used in Juniper's WLAN (Wireless Local Area Network) products. The joint settlement, filed late on Friday, requires approval by a judge and would avoid the need for a trial scheduled for July 9. The Department of Justice (DOJ), HPE and Juniper did not immediately respond to a Reuters request for comment outside business hours. The DOJ sued to block the deal in January, arguing that it would stifle competition and lead to only two companies -- Cisco Systems (CSCO.O), opens new tab and HPE -- controlling more than 70% of the U.S. market for networking equipment. In February, Juniper denied the DOJ's allegations, saying in a filing that the complaint does not correctly represent the market dynamics for wireless network solutions and the companies' rationale for the deal. HPE said more than a year ago that it would acquire Juniper, as it looks to spruce up its artificial intelligence offerings. Reporting by Rishabh Jaiswal in Bengaluru; Editing by Alexandra Hudson and Timothy Heritage Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Business

US DOJ settles antitrust case for HPE's $14 billion takeover of Juniper

Hewlett Packard Enterprise headquarters in Spring, Texas, US, on Monday, May 29, 2023. The U.S. Department of Justice has settled its lawsuit challenging server maker Hewlett Packard Enterprise's all-cash acquisition of Juniper Networks for $14 billion, according to court filings. The settlement requires the combined company to divest HPE's Instant On wireless networking business and license the source code for Juniper's Mist AI software used in Juniper's WLAN (Wireless Local Area Network) products. The joint settlement, filed late on Friday, requires approval by a judge and would avoid the need for a trial scheduled for July 9. The Department of Justice (DOJ), HPE and Juniper did not immediately respond to a Reuters request for comment outside business hours. The DOJ sued to block the deal in January, arguing that it would stifle competition and lead to only two companies -- Cisco Systems and HPE -- controlling more than 70% of the U.S. market for networking equipment. In February, Juniper denied the DOJ's allegations, saying in a filing that the complaint does not correctly represent the market dynamics for wireless network solutions and the companies' rationale for the deal. HPE said more than a year ago that it would acquire Juniper, as it looks to spruce up its artificial intelligence offerings.

US DOJ settles antitrust case for HPE's $14 billion takeover of Juniper - The Economic Times

The Department of Justice (DOJ), HPE and Juniper did not immediately respond to a Reuters request for comment outside business hours. The DOJ sued to block the deal in January, arguing that it would stifle competition and lead to only two companies - Cisco Systems and HPE - controlling more than 70% of the US market for networking equipment.The US Department of Justice has settled its lawsuit challenging server maker Hewlett Packard Enterprise's all-cash acquisition of Juniper Networks for $14 billion, according to court filings. The settlement requires the combined company to divest HPE's Instant On wireless networking business and license the source code for Juniper's Mist AI software used in Juniper's WLAN (Wireless Local Area Network) products. The joint settlement, filed late on Friday, requires approval by a judge and would avoid the need for a trial scheduled for July 9. The Department of Justice (DOJ), HPE and Juniper did not immediately respond to a Reuters request for comment outside business hours. The DOJ sued to block the deal in January, arguing that it would stifle competition and lead to only two companies - Cisco Systems and HPE - controlling more than 70% of the US market for networking equipment. In February, Juniper denied the DOJ's allegations, saying in a filing that the complaint does not correctly represent the market dynamics for wireless network solutions and the companies' rationale for the deal. HPE said more than a year ago that it would acquire Juniper, as it looks to spruce up its artificial intelligence offerings.

DOJ Greenlights HPE-Juniper Deal, 'Huge Victory' For Cisco Alternative, Say Partners

'For the first time, customers will now have a modern network architecture alternative that can best support the demands of AI workloads,' said HPE CEO Antonio Neri. 'The combination of HPE Aruba Networking and Juniper Networks will provide customers with a comprehensive portfolio of secure, AI-native networking solutions.' The U.S. Department of Justice (DOJ) has agreed to settle the lawsuit challenging Hewlett Packard Enterprise's $14 billion acquisition of Juniper Networks, setting the stage for an epic AI networking battle with networking market leader Cisco. The DOJ settlement - which was filed last night in the United States District Court for the Northern District of California - requires the combined HPE-Juniper to license the source code for Juniper's Mist AI software used in Juniper's WLAN (Wireless Local Area Network) products and to divest HPE's Instant On wireless networking business. Following the court filing, HPE and Juniper announced they had reached an agreement with the DOJ, "subject to the court's approval," that "resolves" the lawsuit and "clears the way for the transaction to close." "Our agreement with the DOJ paves the way to close HPE's acquisition of Juniper Networks and preserves the intended benefits of this deal for our customers and shareholders, while creating greater competition in the global networking market," said HPE CEO Antonio Neri in a prepared statement. "For the first time, customers will now have a modern network architecture alternative that can best support the demands of AI workloads. The combination of HPE Aruba Networking and Juniper Networks will provide customers with a comprehensive portfolio of secure, AI-native networking solutions, and accelerate HPE's ability to grow in the AI data center, service provider and cloud segments." Juniper Networks CEO Rami Rahim called the resolution of the lawsuit an "exciting step forward" in delivering on a "critical customer need- a complete portfolio of modern, secure networking solutions to connect their organizations and provide essential foundations for hybrid cloud and AI." HPE partners said the deal is a "huge" victory that opens the door for them and HPE to drive significant networking sales growth versus Cisco. "This is a huge victory for HPE, its partners and customers," said Bob Panos, president of American Digital, Schaumburg, Ill., which was just named HPE North America Solution Provider of the Year at HPE Discover. "This means the market finally has a viable competitor to Cisco. HPE now has a full portfolio from the branch to the campus to the data center to challenge Cisco. This is a huge win for (HPE CEO) Antonio (Neri) and the HPE team!" CRN reached out to Cisco for comment but had not heard back at press time. Panos said he was elated when he received a text this morning stating that the DOJ lawsuit blocking the deal had been settled. "I'm so happy this has been settled," he said. "This is going to be very good for customers. This acquisition from the beginning was always about being able to provide customers with a full AI networking solution from the edge to the data center to the cloud. This fills all the gaps. It means customers can now get a full one stop shop solution from HPE and American Digital. They don't have to look to any other vendor for their IT needs." Panos said the settlement is a "huge opportunity" for American Digital to grow its business in the data center market, providing customers with a complete edge to cloud AI networking solution. "This supercharges our networking business," he said. "This is going to allow us to continue our double digit HPE sales growth." C.R. Howdyshell, CEO of Advizex, No. 129 on the CRN 2025 Solution Provider 500, a Fulcrum IT Partners company, said the settlement is "game changer" for HPE and its partners. "This is an incredible opportunity for HPE versus Cisco," he said. "It gives customers a choice. It gives HPE a competitive advantage in the networking space to go get market share versus Cisco. It means more revenue and more opportunity for the channel and companies like Advizex that are committed to the networking market." The DOJ and HPE stipulated in a "final judgement" filing with the court "prompt sale and license" of Juniper's AI Ops for Mist Source Code for the purpose of what it called "preserving competition in the sale of enterprise-grade wireless local area networking ("WLAN") solutions in the United States." The final Judgment requires HPE-Juniper to facilitate the transfer of up to "30 Juniper engineers familiar with the Mist AI Ops Source Code and up to 25 Juniper sales personnel experienced in selling Mist." Patrick Shelley, chief technology officer (CTO) at PKA Technologies, a Montvale, N.J. solution provider, called the settlement a "huge victory" for HPE. "This is great news," he said. "It feels so good. The concessions from HPE to get this deal approved are minor. This is a big win for HPE, partners and customers. In my opinion this instantly puts HPE Juniper in a leadership position against Cisco. Aruba and Mist AI together are an unbeatable combination." Shelley said the settlement clearing the way for HPE to license the source code for Mist AI could actually provide "strong adoption and more momentum" for a combined HPE-Juniper AI networking portfolio. "Even though this was a forced concession to me it's a good thing," said Shelley. "This is not something that is off-kilter for them." Shelley said he is expecting a wave of phone calls from customers anxious to learn more about the benefits of a combined HPE-Juniper networking portfolio. "This immediately unlocks networking opportunities for us and HPE," he said. "Customers are anxious for a networking alternative to Cisco." Shelley said he expects the Aruba and Mist AI products to be combined into a seamless AI networking solution. "This is an exciting time for the networking business," he said. "This is going to drive innovation could change the networking market forever. You are now going to have two juggernauts - HPE and Cisco- constantly trying to innovate against each other."

US DOJ settles antitrust case for HPE's $14 billion takeover of Juniper

(Reuters) -The U.S. Department of Justice has settled its lawsuit challenging server maker Hewlett Packard Enterprise's all-cash acquisition of Juniper Networks for $14 billion, according to court filings. The settlement requires the combined company to divest HPE's Instant On wireless networking business and license the source code for Juniper's Mist AI software used in Juniper's WLAN (Wireless Local Area Network) products. The joint settlement, filed late on Friday, requires approval by a judge and would avoid the need for a trial scheduled for July 9. The Department of Justice (DOJ), HPE and Juniper did not immediately respond to a Reuters request for comment outside business hours. The DOJ sued to block the deal in January, arguing that it would stifle competition and lead to only two companies -- Cisco Systems and HPE -- controlling more than 70% of the U.S. market for networking equipment. In February, Juniper denied the DOJ's allegations, saying in a filing that the complaint does not correctly represent the market dynamics for wireless network solutions and the companies' rationale for the deal. HPE said more than a year ago that it would acquire Juniper, as it looks to spruce up its artificial intelligence offerings. (Reporting by Rishabh Jaiswal in Bengaluru; Editing by Alexandra Hudson and Timothy Heritage)

HPE and Juniper Networks Reach Settlement With U.S. Department of Justice

Hewlett Packard Enterprise (NYSE: HPE) and Juniper Networks, Inc. (NYSE: JNPR) today announced they have reached an agreement with the U.S. Department of Justice ("DOJ") that, subject to court approval, resolves the DOJ's lawsuit challenging HPE's acquisition of Juniper and clears the way for the transaction to close. "Our agreement with the DOJ paves the way to close HPE's acquisition of Juniper Networks and preserves the intended benefits of this deal for our customers and shareholders, while creating greater competition in the global networking market," said Antonio Neri, president and CEO of HPE. "For the first time, customers will now have a modern network architecture alternative that can best support the demands of AI workloads. The combination of HPE Aruba Networking and Juniper Networks will provide customers with a comprehensive portfolio of secure, AI-native networking solutions, and accelerate HPE's ability to grow in the AI data center, service provider and cloud segments." Upon close of the deal, the combined resources of HPE and Juniper are expected to drive faster innovation across networking silicon, systems, and software to meet customers' increasingly complex connectivity needs. This new alternative to legacy incumbent networking solutions positively changes the competitive dynamics in the networking market and provides customers with greater innovation, choice and faster time to value. Combined with the innovation from HPE in hybrid cloud, storage, compute and software, networking customers will now have an even stronger path to accelerate and simplify their AI transformations. "This marks an exciting step forward in delivering on a critical customer need - a complete portfolio of modern, secure networking solutions to connect their organizations and provide essential foundations for hybrid cloud and AI," said Juniper Networks CEO Rami Rahim. "We look forward to closing this transaction and turning our shared vision into reality for enterprise, service provider and cloud customers." On January 9, 2024, HPE announced its agreement to acquire Juniper in an all-cash transaction for $40.00 per share, representing an equity value of approximately $14 billion. The agreement satisfies the Department of Justice's concerns while maintaining the overall value of the transaction to HPE customers, partners, and shareholders. As part of the settlement, HPE has agreed to divest its global Instant On campus and branch business. After close, HPE will facilitate limited access to Juniper's advanced Mist AIOps technology. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com. About Juniper Networks Juniper Networks (NYSE: JNPR) is leading the convergence of AI and networking. Mist™, Juniper's AI-native networking platform is purpose-built to run AI workloads and simplify IT operations, assuring exceptional secure user and application experiences -- from the edge, to the data center, to the cloud. Additional information can be found at www.juniper.net, X, LinkedIn and Facebook. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and assumptions and are based on HPE's current expectations, estimates, projections, beliefs and assumptions made by HPE, all of which are subject to change. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond HPE's control, and are not guarantees of future results. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements and you should not place undue reliance on any such statements, and caution must be exercised in relying on forward-looking statements. The words "believe", "expect", "anticipate", "guide", "optimistic", "intend", "aim", "will", "estimates", "may", "could", "should" and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any statements related to future actions of HPE under the terms of the settlement with the Department of Justice; the completion of the proposed transaction; the ability of HPE to integrate and implement its plans, forecasts and other expectations with respect to Juniper's business after the completion of the proposed transaction and realize additional opportunities for growth and innovation; HPE's ability to implement its business strategies; and expectations of operational and/or financial performance of the combined company. Risks, uncertainties, and assumptions include those that are described in Hewlett Packard Enterprise's Annual Report on Form 10-K for the fiscal year ended October 31, 2024, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and in other filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission. HPE does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.