HPE have completed its previously-announced acquisition of Juniper Networks, an AI-native network provider. The combination positions HPE to capture the growing AI and hybrid cloud market opportunity by creating an industry-leading cloud-native and AI-driven IT portfolio, including a full, modern networking stack.
The transaction doubles the size of HPE’s networking business and provides customers with a comprehensive portfolio of networking solutions. It also accelerates the company’s portfolio mix shift to higher-margin, higher-growth areas and positions the company for long-term profitable revenue growth.
“Today begins a new era for HPE – we are now at the epicentre of the transformation of IT, where AI and networking are converging,” said Antonio Neri, President and CEO of HPE.
“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.”
“HPE and Juniper have a unique opportunity to disrupt the networking industry at the most important and relevant time,” said Rami Rahim, former CEO of Juniper Networks, who will now lead the combined HPE Networking business.
“Together, we’ll be able to provide customers and partners with a secure network that is purpose-built with AI and for AI.”
The combined company will offer secure, AI-native solutions with the ability to collect, analyse, and act on insightful network data across a broader installed base. The company will reach large adjacent markets, including data centre, firewalls, and routers, bridging the global strength of HPE in enterprise security-first networking and secure access service edge (SASE) security with Juniper’s position in data centre, service provider, and AI-native solutions. Greater research and development scale is expected to enable faster innovation across networking silicon, systems, and software.
The acquisition of Juniper’s high-margin business is expected to be accretive in the near- and long-term for the combined company. The transaction will be accretive to non-GAAP EPS in year 1, post close, with the combined networking business contributing more than 50% of total company operating income.
The acquisition was originally announced on January 9, 2024, and was approved by Juniper shareholders on April 2, 2024.
No comments:
Post a Comment