On January 9, 2024, HPE agreed to acquire Juniper Networks for $14bn. This deal could shake up the enterprise network market and challenge Cisco’s incumbency. This report analyzes from an enterprise network and digital services perspective.

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Summary

Hewlett Packard Enterprise (HPE) has agreed to acquire Juniper Networks for roughly $14bn, agreeing to pay Juniper’s shareholders $40 per share in cash, a 32% premium on the company’s stock price before reports of a potential deal.

Artificial intelligence (AI) is at the heart of this deal. The future of enterprise networking will be built on AI, and vendors are racing to develop the best portfolios. Market sources give high ratings to Juniper’s Mist AI engine. However, Juniper has remained a small player in enterprise networking, accounting for 3.3% of WLAN and 2.3% of Ethernet switch revenues in 2Q23.

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