The Juniper HPE merger is finally happening.
The use of the word ‘finally’ is apt here as the artificial intelligence (AI) networking alliance faced some serious regulatory hurdles.
The Department of Justice (DOJ) initially sued to block the merger over concerns that combining HPE and Juniper would reduce competition in the wireless local area network (WLAN) market, potentially leading to higher prices and less innovation.
The stocks of Hewlett Packard Enterprise and Juniper Networks witnessed surges after the DOJ cleared the merger indicating that the investors on Wall Street approve of their alliance.
The $14 billion deal is backed by the vision that the new AI networking alliance could be a game-changer, not only for the companies joining forces but also for the future of enterprise networking as a whole.
Juniper HPE aims to create $35B AI-driven networking giant
The merger combines the strengths of HPE’s Aruba division in campus networking with Juniper’s cutting-edge Mist AI Ops platform and powerful data center capabilities.
Together, they form a $35 billion networking powerhouse, well-equipped to meet the rising demands of AI-driven workloads, hybrid cloud setups, and next-gen enterprise applications.
For the first time, businesses have a fresh, secure, and all-encompassing alternative to traditional network providers.
HPE CEO Antonio Neri described the deal as a turning point for the company.
“This is the beginning of a new chapter for HPE,” Neri said. “We’re now at the heart of IT’s transformation, where AI and networking are becoming inseparable.”
Why Wall Street is bullish on the merger?
Wall Street’s optimism around the deal stems from its strong financial upside.
The merged networking business now accounts for more than half of HPE’s operating income, effectively doubling the size of its networking arm to $11 billion in yearly revenue.
Juniper’s high-margin operations are expected to boost HPE’s non-GAAP earnings per share as early as the first year post-merger, with even stronger profit growth projected down the line.
Beyond the numbers, the deal also fast-tracks HPE’s pivot toward more lucrative, fast-growing segments, especially AI, cloud, and secure networking.
Investors are taking note of the expected $450 million in annual cost savings within three years, thanks to integration efficiencies and operational streamlining.
Juniper’s Mist AI has already proven it can anticipate and fix network issues before cutting operational costs by as much as 85% and helping customers avoid costly downtime.
By bringing these AI-native capabilities together with HPE’s global footprint and deep experience in hybrid cloud, the combined company aims to accelerate innovation and offer enterprises a stronger, more future-ready alternative as they upgrade their IT infrastructure.
The announcement gave Juniper Networks a solid boost, with shares jumping 8% and turning positive for the year. Hewlett Packard Enterprise saw an even bigger lift, climbing 14% after DOJ cleared the merger.
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