Hewlett Packard given green light for $14bn Juniper Networks acquisition

Hewlett Packard Enterprise (HPE) is set to receive unconditional approval from European Union regulators for its $14 billion acquisition of networking equipment maker Juniper Networks.

The European Commission, which has a deadline of August 1 to make its decision, is expected to greenlight the deal without requiring any concessions, according to sources referenced by Reuters. This approval comes as companies are rapidly upgrading their infrastructure to meet the rising demand for AI-driven services.

HPE first announced the acquisition in January, describing it as a “highly complementary combination” that would enhance “secure, unified, cloud, and AI-native networking,” and drive innovation from the edge to the cloud to exascale. The all-cash transaction values Juniper at $40 per share, representing a 32.4% premium over the stock’s last closing price.

The deal is expected to double HPE’s networking business, offering a comprehensive range of solutions for customers and partners. HPE’s CEO, Antonio Neri, stated that the merger would “strengthen HPE’s position at the crossroads of accelerating macro-AI trends, expand our total addressable market, and foster further innovation for our customers.”

HPE initially expected to close the acquisition by the end of 2024 or early 2025. However, the company has stated it will work with the CMA to complete necessary reviews and secure clearance as soon as possible.