HPE acquires Juniper Networks in a USD 13.4B deal; targets AI networking

Hewlett Packard Enterprise (HPE) completed its acquisition of Juniper Networks on 2 July 2025. The intention to acquire Juniper was announced on 9 January 2024. The transaction for this move is valued at approximately USD 13.4 billion, or USD 40 per share.

The primary objective behind this acquisition is to deliver an industry-leading, comprehensive, cloud-native, AI-driven portfolio.  HPE views the combined entity as capable of offering a modern network architecture alternative specifically designed to support the escalating demands of AI workloads.

The acquisition navigated a complex regulatory landscape, notably securing approval from the U.S. Department of Justice (DOJ) on 28 June 2025, following a settlement that imposed specific divestitures and licensing agreements.

Financially, the transaction is projected to be accretive to HPE’s non-GAAP Earnings Per Share (EPS) within the first post-closing. Furthermore, the combined entity is anticipated to generate USD 450 million in annual synergies by the third year following the acquisition. A significant outcome of this merger is the projected contribution of the networking business, which is expected to account for over 50% of HPE’s total company operating income.

This combination effectively doubles the size of HPE’s networking business, creating a USD 11 billion enterprise that is strategically positioned to capture a significant share of the broader networking market, estimated at over USD 50 billion. This substantially expands HPE’s Total Addressable Market (TAM), encompassing a comprehensive range of edge-to-cloud solutions, AI-native networking, data centre infrastructure, and security offerings.

Furthermore, it also brings an additional 20,000 enterprise customers in HPE’s fold, creating substantial opportunities for cross-selling existing and new solutions.

What’s more interesting is the diverse financing strategy employed by HPE to fund this substantial acquisition. The purchase was financed through a combination of existing balance-sheet cash, the issuance of commercial paper, and borrowings drawn from its three-year and 364 days delayed-draw term-loan credit facilities. These credit facilities were initially disclosed on 12 September 2024.

Upon the successful closing of the acquisition, Juniper Networks was officially merged into a wholly-owned subsidiary of HPE. For Juniper shareholders, each outstanding share was converted into USD 40.00 in cash, marking the conclusion of their direct equity ownership in Juniper.