HPE finalises Juniper Networks acquisition, expands networking business

Hewlett Packard Enterprise has announced the completion of its previously disclosed acquisition of Juniper Networks, Inc, a company known for its AI-native networking technologies. The integration is intended to strengthen HPE’s position in the expanding AI and hybrid cloud markets by consolidating its portfolio into a more comprehensive, cloud-native, AI-enabled offering, including a complete modern networking stack.

The acquisition effectively doubles the size of HPE’s networking division and expands its portfolio of networking solutions. It also supports the company’s ongoing transition towards higher-margin, higher-growth segments, positioning it for sustainable, long-term revenue growth.

“Today marks the beginning of a new chapter for HPE, we are now at the centre of a significant transformation in IT, where AI and networking intersect,” said Antonio Neri, President and CEO of HPE. “This combination allows us to offer customers a modern alternative network architecture and a more comprehensive portfolio across hybrid cloud, AI, and networking. It also supports our strategy for profitable growth by increasing our relevance to customers and expanding our addressable market,” Neri added.

Rami Rahim, former CEO of Juniper Networks, will lead the newly combined HPE Networking business. He commented, “HPE and Juniper are uniquely positioned to reshape the networking industry at a critical moment. Together, we aim to offer secure networks built with and for AI.”

Strategic and financial highlights

Accelerates HPE’s Strategic Vision
The acquisition strengthens HPE’s strategic roadmap by delivering a complete networking IP stack, encompassing silicon, hardware, operating systems, security, software, and services, all under a cloud-native, AI-driven framework. This integration is expected to support broader adoption of hybrid cloud and AI solutions among customers.

Strengthens HPE’s Market Position in Networking
HPE’s networking footprint has now doubled, significantly increasing its reach and overall addressable market. The combined organisation will serve adjacent markets such as data centres, firewalls, and routers, uniting HPE’s enterprise networking and security capabilities with Juniper’s strengths in data centres, service providers, and AI-native platforms.

Enhances AI-Native Capabilities for Customers
The integration offers customers a modern, end-to-end networking architecture suited to meet the demands of increasingly complex and data-intensive workloads, particularly those involving hybrid AI environments. The combined R&D capacity is expected to drive more rapid innovation in networking silicon, systems, and software.

Broader Access to HPE’s Portfolio
Networking customers will gain access to HPE’s broader portfolio, including hybrid cloud, storage, compute, and software solutions, helping to streamline their AI transformation strategies.

Leverages HPE’s Global Go-to-Market Infrastructure
Juniper’s solutions will benefit from HPE’s extensive global sales and distribution network. The combined business will offer integrated, AI-native, secure networking solutions capable of delivering actionable insights across a wider customer base.

Financial Impact
Juniper’s high-margin business is expected to contribute positively to HPE’s financial performance. The transaction is anticipated to be accretive to HPE’s non-GAAP earnings per share within the first year following closure. The networking division will now account for more than 50% of HPE’s total operating income.

The acquisition was first announced on 9 January 2024 and received shareholder approval from Juniper on 2 April 2024. As of the transaction’s completion, Juniper’s common stock,previously traded on the NYSE under the ticker “JNPR”, has been delisted and will no longer be publicly traded.