Juniper Networks Jumps 21.8% After Reports of $13B Acquisition Offer
Hewlett Packard Enterprise (NYSE: HPE) is reportedly in advanced discussions to acquire Juniper Networks (NYSE: JNPR) for roughly $13 billion. The deal, seen as a strategic move by HPE to bolster its presence in the burgeoning AI market, sent Juniper’s shares soaring nearly 22% at Tuesday’s opening bell.
HPE Reportedly Values Juniper Networks at $13 Billion
Shares of Juniper Networks popped over 21% at the market open Tuesday following reports that Hewlett Packard Enterprise is in talks to acquire the networking hardware maker. According to Reuters, the deal, worth around $13 billion, could be announced this week. HPE’s stock fell 8.3% at the market open.
At its currently traded price, Juniper Networks commands a market cap of $11.75 billion, significantly lower than the rumored value of the deal. Neither of the companies has confirmed the deal officially yet.
Juniper Network Deal Can Bolster HPE’s AI Presence
HPE’s takeover of Juniper Networks is seen as a strategic move that would help the legacy technology giant expand its AI offerings, the WSJ noted in its exclusive report.
The acquisition is expected to bring several advantages for HPE, which split off from Hewlett-Packard Company in 2015. Primarily, Juniper will help the cloud computing company bolster its networking portfolio and challenge the market leader Cisco’s dominance.
Gina Luk, practice head at TechInsights Telecom Strategies, said the deal could increase HPE’s market share in the networking sector and tackle “high-growth areas of 5G and cloud networking.”
More significantly, Juniper’s Mist AI platform is of particular strategic importance to HP. The reason for this is the company’s shift in computing strategy, which is now increasingly focused on enabling a wide array of AI applications.
“Their Mist AI platform is seen as a differentiator and specializes in AI-powered network management.”
– said Luk.
According to Gogia, this will likely become even more relevant as the US government ramps up its investments in domestic chip manufacturing, emphasizing the significance of high-end chips in AI technology.
If HPE proceeds to acquire Juniper Networks, do you think the company could disrupt the current leadership in that sector?
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