HPE's $14 Billion Juniper Acquisition Cleared by DOJ with AI-Related Conditions

DoJ clears HPE to buy Juniper if it sells some Wi-Fi kit

Which it will, happily, to create a networking biz that's still far smaller than Cisco's or Nvidia's The US Department of Justice (DoJ) has cleared the way for HPE's $14 billion acquisition of Juniper Networks. The DoJ announced its approval in a Saturday missive that explained regulators will allow the deal - and drop a lawsuit opposing it - if HPE divests its Instant On business and conducts an auction to license the source code for Juniper's AI Ops for Mist. Instant On sells Wi-Fi kit for branch offices and campuses. AI Ops for Mist is a tool that applies artificial intelligence to network management chores. HPE welcomed the deal. A company announcement featured CEO and president Antonio Neri promising customers will enjoy "greater competition in the global networking market" while shareholders can look forward to the deal helping HPE to accelerate growth "in the AI data center, service provider and cloud segments." Juniper's FY 2024 revenue was $5.07 billion, trailing Arista's $7 billion, and a long way adrift of Cisco's $53.8 billion. Nvidia has also emerged as a major networking player, clocking up around $15 billion in annual sales. HPE doesn't detail networking revenue, but counts most of it in a segment it calls "Intelligent Edge" that won $4.5 billion of revenue in FY 2024 - an $852 million year-on-year decline. If the combined Juniper and HPE grow a little, they could together earn $10 billion of networking revenue this year to become the number three player in the datacenter market. HPE last week outlined its plan to use AI to auto-magically manage its existing Aruba networking gear and has often expressed a desire to ride the AI wave to higher growth in the field. It can now make that attempt with a portfolio that spans routing, switching, and wireless, and has proven prowess on the enterprise LAN, the cloud, and on carrier networks. Cisco can match HPE in those fields and also plans to make AI-powered management the future of its networks. HPE announced its plan to acquire Juniper in January 2024. The saga has a while to run as the DoJ set a 180-day deadline for the sale of HPE's Instant On business, and it always takes a while for lawyers and finance folk to tie up all the loose ends on a big takeover of this sort. Once that's all sorted, the next steps usually include the announcement of new executive leadership, a round of layoffs as merging companies eliminate personnel overlaps, followed by a reveal of plans to combine product ranges. ®

HPE-Juniper deal closes, integration questions remain

HPE has completed its takeover of Juniper Networks, but the conjoined pair isn't yet ready to discuss details about how the networking business will fit into HPE's existing lineup alongside Aruba. This lack of detail comes despite the fact that it's been 18 months since HPE announced the Juniper buy, in a deal said to be worth $14 billion. The transaction will double the size of HPE's networking business, the company claims, and allow it to offer customers a "comprehensive portfolio of networking solutions." The deal closes just days after HPE agreed to an antitrust settlement deal with the US Department of Justice (DoJ), wherein it will divest its Instant On Wi-Fi business and license the source code for Juniper's AI Ops for Mist, an AI-based network management tool. Now the real work can begin, but the companies were tight-lipped about what happens next. Rami Rahim, former CEO of Juniper and now the lead of the combined HPE Networking business, revealed during a press conference on Wednesday that he is just starting work on an "integration strategy," while both the HPE Aruba and HPE Juniper brands are set to be retained. "I'm rolling up my sleeves now and starting on a thoughtful integration strategy," Rahim said. "We want everyone to recognize that all our customers, whether they are starting their journey on the Aruba side or the Juniper side, are going to have a path to an exciting true north" - meaning a pathway to secure AI-native and cloud-native networking, he claimed. However, it is "too early" to provide specifics about many details, including how Juniper's channel partner program stands to be integrated with HPE's, and what is going to happen with Juniper's workforce once its team is integrated into the HPE business structure. When asked how Juniper's Mist AI operations will be integrated with HPE's OpsRamp, Rahim said, "This is day one and I'm just getting started." He added that his objective as leader of the combined organization is to "build the best networking business really on the planet," claiming that this "comes down to the thoughtful exercise we're embarking on," and that "nobody is going to get left behind." Speaking of its deal with the DoJ to get the acquisition cleared, HPE President and CEO Antonio Neri said it agreed to offer a license to Juniper Mist via an auction, but that covered only the AI operations part of the technology. Neri also said that Aruba Instant On, which it agreed to divest, is a "very new business" that specifically targets small businesses and is "completely separate from the traditional HPE Aruba platform," which is why it was willing to let it go as part of the deal. In its Q2 earnings announced last month, HPE reported revenue of $7.6 billion, up 6 percent from the same period a year earlier. ®

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 regulators clear HPE takeover deal of Juniper - but with some major conditions

HPE must divest its Instant On business and auction off a license The US Department of Justice has settled its lawsuit claims against HPE's $14 billion acquisition of Juniper Networks, which means the deal may now proceed pending court approval. However, HPE must adhere to some pretty hefty conditions to pacify regulators, including divesting its 'Instant On' wireless networking business and auctioning a license for Juniper's AI Ops for Mist source code, which it uses in WLAN products. Still, HPE CEO Antonio Neri welcomed the news and confirmed the agreement resolves antitrust concerns in a joint statement by HPE and Juniper. "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," Neri said. HPE hopes joining forces with Juniper will enable it to address "legacy incumbent networking solutions" by combining the two companies' hybrid cloud, storage, compute and software expertise. "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," Juniper Networks CEO Rami Rahim added. Department of Justice Chief of Staff Chad Mizelle called the win a "key legal victory" for the antitrust department. The news comes almost a year after the European Commission first approved the deal - in August 2024, European antitrust regulators stated that the takeover "would not significantly reduce competition." With HPE Intelligent Edge revenue down $852 million year-over-year to $4.5 billion, Juniper's full 2024 revenue of $5.1 billion could further strengthen HPE's position in the market. Looking ahead, HPE has been given 180 days to divest Instant On or it risks facing further action.

HPE finally gets the green light to buy Juniper and take on Cisco in AI networking - SiliconANGLE

HPE finally gets the green light to buy Juniper and take on Cisco in AI networking Hewlett Packard Enterprise Co. has finally been allowed to proceed with its $14 billion acquisition of Juniper Networks Inc. after settling a lawsuit filed by the U.S. Department of Justice. The DOJ had tried to block the deal from going ahead by filing its lawsuit in January, arguing it would significantly harm competition in the wireless networking market. At the time, it said HPE and Juniper are the second- and third-largest wireless networking providers in the U.S. respectively, trailing the market leader Cisco Systems Inc. However, it has now reached an agreement with the companies that requires the soon-to-be-unified company to license the source code for Juniper's Mist AI Ops software and divest HPE's Instant On wireless networking business unit. The compromise was filed with the U.S. District Court for the Northern District of California on June 27, and still requires the approval of a judge, but it's thought that this last hurdle is a formality, Reuters reported. It comes less than two weeks before a trial was due to commence on July 9. The most intriguing aspect of the compromise is that the combined company will be required to auction Juniper's Mist AI Ops source code, for this is thought to be one of the key assets that HPE was looking to get its hands on when it first announced the acquisition in January 2024. Rivals will thus be able to bid to access the same technology, according to the DOJ's announcement late Friday. "The parties must hold an auction to license Juniper's AI Ops for Mist source code - an important component in modern WLAN systems," the DOJ stated. "The license will be perpetual, non-exclusive, and include optional transitional support and personnel transfers to facilitate competition." HPE stated in its own press release that what this really means is it will have to "facilitate limited access to Juniper's Mist AIOps technology". In addition to that requirement, the DOJ also strong-armed HPE into agreeing to divest its Instant On campus and brand wireless large-area networking business, including all of its software assets, intellectual property, research and development teams and customer relationships. The agreement specifies it must be sold to a "DOJ-approved buyer" within 180 days of the acquisition's close, the DOJ added. HPE's Instant On WLAN software is primarily aimed at small- and medium-sized businesses, and consists of cloud-based wired and wireless networking equipment that can be installed easily with minimal hassles for information technology teams. In a statement, HPE Chief Executive Antonio Neri (pictured) expressed satisfaction with the agreement, saying that it "preserves the intended benefits" of the original deal for both customers and shareholders, while ensuring competitiveness in the global networking market. "For the first time, customers will now have a modern network architecture alternative that can best support the demands of AI workloads," Neri insisted. "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 center and cloud segments." Juniper's CEO Rami Rahim was just as enthusiastic, saying the agreement marks a key step forward for the companies to deliver on a critical customer need. He said it means customers will be able to access a "complete portfolio of modern, secure networking solutions to connect their organizations and provide essential foundations for hybrid cloud and AI." HPE has long stressed that the deal is about beefing up its position in the AI networking arena. In a keynote at HPE Discover in Barcelona in November, Neri explained that a modern networking foundation is just as important for AI as the silicon that powers large language models and gets so much attention. "A high-performance networking fabric is essential, and we are taking our networking position to a new level, one that will disrupt the industry and extend our network and AI expertise by leaps and bounds," Neri said.

Analysis: With HPE-Juniper deal now cleared, what's ahead for customers?

Many industry watchers, me included, had started to wonder if any agreement could be reached prior to the upcoming July 9 court date. Last week HPE held its annual "Discover" user event and it was clear, while the company was optimistic the deal would close, it had still been pushing forward with driving new artificial intelligence features into the Aruba networking portfolio. The DOJ's assertion was that the combination of Cisco and HPE+Juniper would control over 70% of the U.S. enterprise wireless local-area networking market and this would create competitive imbalance. In my opinion, this has always been a weak argument as Cisco's share is so large that it plus almost anyone would have dominant share. Also, history has shown that dominant share can always be eroded quickly when markets transition. At one time, Cisco owned more than 90% of the branch router market, but the rise of software-defined wide-area networking created a transition that enabled VMware VeloCloud, Fortinet, HPE and others to grab big chunks of share. The smartphone market once dominated by Palm, was usurped by BlackBerry and then again upended with the rise of Apple and Android. AI is coming to networking, and it will create its own transition for both wired and wireless networks. Last year, I conducted an "AI in networking" study with Bob Laliberte from theCube Research and we asked how likely companies would be to switch vendors if the AI was better and more than 90% said they would. There's nothing unique about North American Wi-Fi and change will come with better products, so Justice chief Pam Bondi and the rest of the DOJ could have just let things play out. But alas, they didn't, and it tossed a bit of monkey wrench into the acquisition of Juniper by HPE. Settling didn't come without a price. HPE had to make a couple of concessions. The first is the company has agreed to divest its "Instant On" campus and branch Wi-Fi business, which is targeted to companies with little to no information technology staff. Though this is an excellent product, it's not a core part of the business and the impact should not be significant. HPE has 180 days to find a buyer for the business which includes all assets, R&D, intellectual property and customers related to Instant On. The other concession is the HPE has agreed to license Mist for up to two winning bidders of the license, which will be determined through an auction process. Upon closing (no date was given), HPE will have 180 days to auction the AI Ops for Mist Source Code to a bidder that is acceptable to the United States, which will be determined by the DOJ. The government has allowed for three or more companies to bid. If multiple bidders exceed $8 million, only two will be granted rights to the source code. Also, at the option of the winning licensee, HPE-Juniper will facilitate the transfer of up to 30 Juniper engineers familiar with the source code and up to 25 sales personnel who are experienced in selling Mist. HPE-Juniper will also provide financial incentives to encourage employees to transfer to the acquiring company. The license will include a one-year non-solicit provision preventing other employees to be poached. Lastly, 12 months of transition services will be included for the winning bidders. Licensing the Mist code is a curious provision. I understand how divesting Instant On reduces the combined market share. But forcing HPE-Juniper to license Mist doesn't do anything but put best-in-class AI Ops networking software in the hands of another company. That's perplexing and, in my opinion, shows the DOJ didn't really understand the intricacies of this. Regardless, all the hurdles are now out of the way and other requiring a judges signature all hurdles are out of way and both companies can move on. At Discover, Neri led off with networking and was emphatic at that the network will play a key role in not just AI, but modern IT. It's the foundation for everything today as we live in a world where everything is connected. The HPE Aruba Networking portfolio is excellent and complementing that with Mist AI can act as an accelerant for HPE to establish itself as not just a compute leader but in networking. For Juniper, the company has been one of the most innovative AI networking companies and now it gives it a much bigger R&D budget, more customers and the ability to tie into a compute stack for integrated solutions. Over the past 18 months I've talked to several Juniper and HPE customers and they were a combination of curious, nervous and excited. Most customers understand the importance of AI to networking but have been concerned about what happens to their products moving forward. Will HPE keep one over the other? Will some be end-of-lifed? Will customers be forced to transition? These are all excellent questions I've asked HPE and Juniper management. Both companies have been consistent with their responses that there are no plans to disrupt customers, and both sets of products will live on and eventually brought together but no one will be forced. If one looks back at how HPE handled Aruba, the commentary is consistent with this. This creates more work for HPE, but it's the right thing to do and the company has generally deferred to customer satisfaction, even if it's a hit to margins. Though I was never a fan of the DOJ's basis for the lawsuit, it is good to see the settlement as all parties can now move forward. Will Juniper be the elixir that transforms HPE? Only time will tell, but at least now the two companies can move forward and that's important not just to them but to their customers, channel partners and the broader networking industry.

HPE closes $14B Juniper acquisition following regulatory approval - SiliconANGLE

HPE closes $14B Juniper acquisition following regulatory approval Hewlett Packard Enterprise Co. has closed its acquisition of Juniper Networks Inc. more than a year after signing the $14 billion deal. The companies announced the milestone this morning. A few days earlier, the U.S. Justice Department ended an antitrust lawsuit that sought to block the transaction. "As a result of both teams' efforts over the last 18 months to prepare for this day, we are well positioned to swiftly integrate HPE and Juniper and we look forward to sharing key milestones as we progress," HPE Chief Executive Officer Antonio Neri wrote in a blog post. HPE sells network equipment for data centers, offices and 5G infrastructure through its Aruba subsidiary. Juniper competes in many of the same markets. During the first quarter, the latter company generated an adjusted net income of $147.2 million on $1.28 billion in revenue. HPE expects the acquisition to double its networking business. Furthermore, Juniper's assets will become accretive to the company's adjusted earnings per share within a year. That will put the newly expanded networking business on track to generate more than half of HPE's operating income. The Justice Department filed its antitrust lawsuit over concerns about the deal's impact on the WLAN, or wireless local area network, segment. This product category encompasses offerings such as the Wi-Fi access points that companies use to provide wireless connectivity in their offices. In the lawsuit, antitrust officials argued that the Juniper acquisition would make the WLAN market less competitive. The Justice Department ended the litigation after HPE made a series of commitments to address its concerns. The company will offload its Instant On WLAN business, including the associated intellectual property and personnel, within 180 days. Furthermore, HPE will license Juniper's Mist AIOps technology to competitors. Mist is a software platform that uses artificial intelligence to help administrators troubleshoot network issues. After implementing those measures, HPE will still be left with Juniper's sizable WLAN business. The unit's sales grew 21.9% year-over-year in the first quarter to $120.9 million. HPE is also gaining a range of other assets through the deal, including Juniper's cloud networking business. In the first quarter, the latter company generated 29% more revenue from cloud providers than a year earlier. Juniper sells network equipment that infrastructure-as-a-service providers use to link together their data centers. Inside those data centers, the company's Ethernet switches can be used to power AI clusters. Juniper also offers a software platform called Apstra Data Center Director that helps optimize the flow of traffic between graphics cards. One of the methods that the company's software uses to speed up AI clusters is called explicit congestion notification, or ECN. It allows network devices to notify the other components of a technology environment when they receive too much traffic. Upon receiving such an alert, an AI cluster can scale back request volumes to avoid overwhelming the network. "Our new end-to-end network portfolio has robust hardware across all domains (enterprise, service provider, and cloud), managed by a single cloud-native management platform with on-premises and virtual private cloud options," Neri wrote.

Hewlett Packard Enterprise, Juniper Networks Stocks Jump as DOJ Approves Deal

The deal requires Hewlett Packard Enterprise to divest its Instant On WLAN business and make Juniper's AI Ops for Mist source code open to other firms. Shares of Hewlett Packard Enterprise (HPE) and Juniper Networks (JNPR) jumped Monday after the two tech firms and the Department of Justice (DOJ) announced they had reached a deal to allow HPE's $14 billion purchase of Juniper to go through. Regulators had filed a lawsuit in January to block the acquisition, arguing that because of the companies' strength in wireless local area network (WLAN) technology, the combination "would eliminate fierce head-to-head competition between the companies, raise prices, reduce innovation, and diminish choice for scores of American businesses and institutions." HPE, Juniper, and the DOJ said the settlement satisfies the government's requirements, including having HPE divest its global Instant On campus and branch WLAN business, and that the merged firm will make Juniper's AI Ops for Mist source code available to rivals. The purchase of Juniper by the provider of IT solutions to businesses was aimed at boosting HPE's position in the booming market for artificial intelligence products. "For the first time, customers will now have a modern network architecture alternative that can best support the demands of AI workloads," HPE CEO Antonio Neri said. The news lifted Juniper Networks shares 8% and into positive territory for 2025. Shares of Hewlett Packard Enterprise soared 11% to lead early S&P 500 gainers Monday but remain in the red for the year.

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."

Why Is Hewlett Packard Stock Soaring On Monday? - Juniper Networks (NYSE:JNPR), Hewlett Packard (NYSE:HPE)

Hewlett Packard Enterprise HPE and Juniper Networks, Inc. JNPR reached an agreement with the U.S. Department of Justice (DOJ) on Saturday. This settlement, subject to court approval, resolves the DOJ's lawsuit that challenged HPE's acquisition of Juniper and paves the way for the transaction to close. The acquisition was initially announced in January 2024, where HPE agreed to acquire Juniper in an all-cash transaction for $40.00 per share, valuing Juniper at approximately $14 billion. Also Read: JPMorgan Bullish On Hewlett Packard Enterprise's Future, Cites 'Durable' Non-AI Segments, Capital Returns The DOJ, in a statement on Saturday, said, "Achieving a result otherwise unavailable through litigation, earlier today, the Justice Department advised the court it had reached a settlement with HPE and Juniper that allows their merger to continue." 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 closing, HPE will facilitate limited access to Juniper's advanced Mist AIOps technology. Upon closing the deal, HPE and Juniper's combined resources are expected to drive faster innovation across networking silicon, systems, and software. "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." For the second quarter, the company reported adjusted earnings per share of 38 cents, beating the consensus estimate of 33 cents. Hewlett posted sales of $7.63 billion, beating the consensus estimate of $7.50 billion, representing a 6% year-over-year climb. Price Action: Both HPE and JNPR saw significant gains in premarket trading on Monday. As of the last check on Monday, HPE stock climbed 12.7% to $20.74, while JNPR stock rose 8.42% to $39.92. This surge in share prices follows the announcement of the DOJ settlement, which clears a major hurdle for HPE's acquisition of Juniper. Read Next: Palantir, Accenture Partner To Infuse AI Into Federal Agency Workflows Photo via Shutterstock HPEHewlett Packard Enterprise Co$20.6011.9%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum23.80Growth83.93Quality47.24Value75.06Price TrendShortMediumLongOverviewJNPRJuniper Networks Inc$39.928.42%Market News and Data brought to you by Benzinga APIs

HPE Just Dodged A DOJ Roadblock, Now It's All-In On Juniper And AI - Hewlett Packard (NYSE:HPE)

Hewlett Packard Enterprise Co HPE has reached a settlement with the Department of Justice around the acquisition of Juniper Networks Inc JNPR and is likely to focus on getting "the deal done as quickly as possible," according to BofA Securities. The Hewlett Packard Enterprise Analyst: Analyst Wamsi Mohan maintained a Buy rating, while raising the price target from $20 to $23. The Hewlett Packard Enterprise Thesis: The announcement is positive as it gives the company an opportunity for accelerated growth and margin expansion through cross-selling and platform unification with Juniper Networks, Mohan said in the note. Check out other analyst stock ratings. The combined entity, following the acquisition, would be positioned to offer "an end-to-end networking and AI infrastructure stack that can better compete in AI enabled datacenter and cloud-edge environments," the analyst wrote. The acquisition would be a catalyst for multiple expansion as well as long-term earnings growth, he added. As per the DOJ settlement, Hewlett Packard Enterprise has agreed to divest InstantOn and auction licenses for two of Juniper Networks' Mist AIOps source code packages, Mohan said. These concessions "are narrow in scope and preserve the core strategic rationale" of the acquisition, he further stated. HPE Price Action: Shares of Hewlett Packard Enterprise had risen by 13.04% to $20.81 at the time of publication on Monday. Read Next: A Weaker Dollar Just Unlocked A Surprise 2025 Winner -- And Smart Money Is Moving In Photo: Shutterstock HPEHewlett Packard Enterprise Co$20.8713.4%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum23.80Growth83.93Quality47.24Value75.06Price TrendShortMediumLongOverviewJNPRJuniper Networks Inc$39.908.37%Market News and Data brought to you by Benzinga APIs

The HPE-Juniper Networks U.S. DOJ Settlement: Five Things You Need To Know

The U.S. Department of Justice's decision to drop the lawsuit challenging Hewlett Packard Enterprise's $14 billion of acquisition of Juniper Networks provides the AI and data center networking muscle to go head to head against Cisco in a heated battle for AI network supremacy, partners told CRN. "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 President and CEO] Antonio [Neri] and the HPE team." Cisco, for its part, responded with this statement to CRN: "Cisco powers the networks of over 95 percent of Fortune 500 companies and serves every major industry. As the only company offering a complete, fully integrated networking and security offering, no one is better positioned to drive enterprise infrastructure in the AI era than Cisco. At Cisco Live, we unveiled innovations to accelerate AI adoption and transform IT with next-generation networks, security, observability and collaboration. By solving challenges across domains and driving architectural shifts with trust at our core, Cisco is leveraging its market leadership across industries to help organizations stay ahead and navigate the future of technology." The DOJ settlement, which was filed on June 27 in the U.S. 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 products to two winning bidders and to divest HPE's Instant On wireless networking business. Even though it is required to license Mist AIOps, HPE said it is retaining full ownership of the software and will continue to innovate on it. HPE partners said they see the concessions as minor given the robust edge-to-cloud portfolio a combined HPE-Juniper will now have to compete against Cisco. "I'm so happy this has been settled," said Panos. "This is a 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 Independence, Ohio-based 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." Patrick Shelley, 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." Here's a look at the terms of the DOJ's settlement greenlighting HPE's $14 billion acquisition of Juniper Networks.

HPE Completes $13.4B Juniper Networks Acquisition, CEO Antonio Neri Calls It Start Of A 'New Era'

'Today begins a new era for HPE - we are now at the epicenter of the transformation of IT, where AI and networking are converging,' says HPE CEO Antonio Neri. Hewlett Packard Enterprise's long road to complete its $13.4 billion acquisition of Juniper Networks ended Wednesday with what HPE called the "successful completion" of the blockbuster deal. The closing of the acquisition comes just four days after the U.S. Department of Justice agreed to settle the lawsuit challenging the acquisition which was announced by HPE 18 months ago. Juniper is now a wholly owned subsidiary of HPE. "Today begins a new era for HPE - we are now at the epicenter of the transformation of IT, where AI and networking are converging," said HPE CEO Antonio Neri in a prepared statement heralding the completion of the deal. "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. We look forward to welcoming the Juniper team to HPE." Rami Rahim, the former CEO of Juniper Networks, who will now lead the combined HPE Juniper networking business, said the deal provides a "unique opportunity to disrupt the networking industry at the most important and relevant" time. "Together, we'll be able to provide customers and partners with a secure network that is purpose-built with AI and for AI," he said. HPE said the deal accelerates its "strategic vision with a full networking IP stack: from silicon, to hardware, to the operating system, to security, to software and services, with a cloud-native and AI-driven approach." In fact, HPE predicted the integration of the two companies "will accelerate customers' deployment and adoption of both hybrid cloud and AI." HPE partners for their part, said they are moving fast to present a combined HPE-Juniper networking portfolio from the branch and campus to the data center as an AI networking alternative to Cisco. Bob Panos, president of American Digital, Schaumburg, Ill., which was just named HPE North America Solution Provider of the Year at HPE Discover, said the quick closing of the deal in the wake of the settlement with the DOJ is a testament to HPE's drive to move quickly to capitalize on the AI networking opportunity. "I love the speed HPE is moving at," he said. "It shows how prepared they were to make this happen and how totally committed they are to this." American Digital is also "moving fast" to present the full HPE-Juniper Networks AI networking stack to customers. "We have already been working with Juniper in preparation for this," he said. "We also want to hit the ground running. We signed up with Juniper last year in anticipation of this. We didn't wait for it to happen. The fact they pulled the trigger so quickly here shows me they are ready to forge ahead." Panos said he expects American Digital's data center networking business to soar in the wake of the acquisition. "We made the investment in the combined portfolio and we expect it to pay off," he said. "We already have several Juniper opportunities. We have been watching and anticipating with the close of the deal. We wanted to do the business on HPE paper." C.R. Howdyshell, CEO of Advizex, No. 129 on the CRN 2025 Solution Provider 500, a Fulcrum IT Partners company, said his sales teams are already working with HPE and Juniper to drive networking as a service sales growth. "We already have a concerted effort in place with our sales teams pulling this all together," he said. "We have already been meeting with the Aruba and Juniper teams in various regions to get the ball rolling." Howdyshell said there is a "feeling of excitement and optimism" surrounding the deal, especially from the Juniper Networks team. "They see the opportunity to scale the business with HPE," he said. Howdyshell complimented the DOJ for settling the case and making the "best decision" for the IT industry. "This is a win for customers, the channel, and the entire HPE ecosystem," he said. This is going to open up incremental opportunities for partners like Advizex. I am not sure people understand the full potential of this deal. It is a game changer. It is going to change how we do business and go to market." Howdyshell said the deal opens the door to a new era of choice in the networking market with two strong companies: HPE-Juniper and Cisco. "This provides all customers with a choice," he said. "They are going to welcome the competition." As for the impact on Advizex, Howdyshell called it a "big boost" to the company's business with the ability to now provide a "next-generation AI networking solution" in an Advizex pay-per-use model. HPE shares have soared nearly 13 percent in the wake of the DOJ settlement to the completion of the deal from $18.41 on June 27 to $20.75 in early trading on Wednesday.

CEO Antonio Neri On Why HPE-Juniper Is A New 'Industry Powerhouse' That Will Drive 'Market Share And Profit Creation'

Hewlett Packard Enterprise CEO Antonio Neri sounded off on the successful completion of HPE's $13.4 billion acquisition of Juniper Networks including the settlement with the U.S. Department of Justice, the integration of the two product portfolios and partner programs, and bringing the two cultures together into a single company. Hewlett Packard Enterprise CEO Antonio Neri said Wednesday that the successful completion of his company's $13.4 billion acquisition of Juniper Networks creates an "industry powerhouse" that will drive "market share and profit creation" in the AI era. Here is an excerpt from the highlights of the question-and-answer session with analysts and press. Hewlett Packard Enterprise CEO Antonio Neri said the successful completion of the $13.4 billion acquisition of Juniper Networks creates a new "industry powerhouse" with the "vision, scale and innovation to define and lead" customers and partners to reimagine the future in the AI networking era. "We are not just building a stronger company," said Neri speaking to industry analysts and the press in a conference call after the company announced the completion of the deal. "We are establishing an industry powerhouse with the vision, scale and innovation to define and lead the future, one that will serve our customers and partners better than ever and reimagine what is possible." The closing of the acquisition comes four days after the U.S. Department of Justice agreed to settle the lawsuit challenging the blockbuster deal and 18 months after the acquisition was first proposed by HPE. "This is a new era of IT defined by the convergence of networking, hybrid cloud and AI, and the role of networking as the connected fabric for both the enterprise and service providers which has never been more relevant," said Neri, proclaiming it an "exciting day" for HPE and the IT market. "So with today's announcement we mark the beginning of what I call a new exciting chapter for HPE. Our powerful combination with Juniper will enable HPE to offer an industry-leading, secure, cloud-native, AI-driven portfolio including a full modern networking stack." Juniper becomes a wholly owned subsidiary of HPE with the combined HPE networking business to be headed by former Juniper Networks CEO Rami Rahim, who becomes the president and general manager of the new HPE Networking business. HPE said the Aruba and Juniper brands will continue side by side with the HPE brand under HPE Juniper Networking and HPE Aruba Networking with the combined business referred to as HPE Networking. Neri said the deal marks the first time in his seven and a half years as the CEO that HPE has had the "entire technology stack to drive a modern, secure AI-driven portfolio which both customers and technology demands now because AI has obviously changed everything. So there is a view for shareholders and there is a view for customers and partners which ultimately translates into market share and profit creation." As for the financial impact of the acquisition, Neri said the deal will be "accretive" to non-GAAP earnings per share in the first year with more than 50 percent of HPE's operating profits coming from the HPE Networking business unit. Over time, Neri said, the deal will translate into "market share" gains. "Market share drives revenue and profit," he said. "That is fundamentally what you should see going forward." Here are the five boldest statement from Neri's press conference on the successful completion of HPE's acquisition of Juniper Networks.

Why Hewlett Packard Enterprise Stock Jumped Today | The Motley Fool

The U.S. Department of Justice has settled a lawsuit against HPE for its $14 billion acquisition of Juniper Networks, avoiding the previously set July 9 trial. The settlement requires the company to divest its Instant On wireless networking business and to license the source code for one of Juniper's products, Mist AI. The DOJ initially sued in January, arguing the deal would stifle competition, leaving Cisco and HPE controlling over 70% of the U.S. networking equipment market. Juniper and HPE denied these claims, claiming the DOJ misrepresented market dynamics. The settlement now awaits a judge's approval to proceed. HPE's acquisition of Juniper was designed to enhance its artificial intelligence (AI) networking offerings and boost sales. Assuming the settlement is given the green light by the judge, I think HPE is in a solid position and could be a great addition to a balanced portfolio. While HPE's margins aren't great, management is actively working to correct this. The company is a mainstay in networking, and Juniper will help give it the edge it needs to succeed in AI. The stock is reasonably priced, with a price-to-earnings ratio (P/E) significantly less than its rival Cisco.

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.

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

(Reuters) -The U.S. Justice Department 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. In a joint statement, HPE and Juniper said the agreement resolves the Justice Department's concerns and clears the way for the transaction to close. HPE CEO Antonio Neri said the deal would offer customers a "modern network architecture alternative" tailored for AI workloads. The Justice Department did not immediately respond to a Reuters request for comment outside business hours. The department 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 government's allegations, saying in a filing that the complaint did 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 and Bipasha Dey in Bengaluru; Editing by Alexandra Hudson, Will Dunham and Timothy Heritage)