Former maker of expensive printer ink HPE is buying Juniper Networks in a £11 billion deal that sets up a fight for network supremacy in the AI era between HPE Aruba Networking and market leader Cisco Systems.
HPE said the deal to buy California-based Juniper gives it more AI networking power and doubles its networking business, making what it called in a statement a “new networking leader with a huge portfolio that gives customers and partners a tempting new choice to drive business value.”
HPE is paying £31 per share in a cash deal that expects to boost its non-GAAP EPS and free cash flow in the first year after the deal closes.
On a pro forma basis, the new networking segment will go up from about 18 per cent of total HPE revenue as of fiscal year 2023 to about 31 per cent and make more than 56 per cent of HPE’s total operating income.