In the first mega-deal of 2024, Hewlett Packard Enterprise (HPE), the offshoot of industry pioneer Hewlett-Packard, announced a $14 billion acquisition deal with networking equipment maker Juniper Networks (JNPR). HPE is positioning the deal as an artificial intelligence play. HPE CEO Antonio Neri claimed the acquisition was, “… a major leap forward in our AI and hybrid cloud strategy.“
HPE is buying Juniper for $40 per share. That is a 32% premium above Juniper’s closing stock price on the day before the HPE announcement. The deal is expected to close in early 2025. Juniper CEO Rami Rahim will lead the combined HPE networking business and report to HPE’s Neri. The deal will add $11.2 billion to HPE debt, including $1.7 billion of assumed Juniper debt. HPE will pay for the acquisition in part through cash from a 2023 sale of its remaining interest in China-based joint venture H3C for $3.5 billion.
About Juniper
Juniper has been under performing of late. The company’s stock price fell about 8% in 2023, while the NASDAQ Composite gained 43%. The firm has struggled against Cisco (CSCO) in the networking equipment market. Juniper Networks was founded in 1996. It has grown its networking product line-up, including routers, switches, and security products. But the company also runs Mist AI. Mist AI is an AI and machine learning business that specializes in AI-powered network management.
About HPE
HPE has a long history of acquisitions.
- In 2001 the original HP purchased Compaq for $25 billion.
HP acquired services provider Electronic Data Systems for $13.9 billion in 2008.- In November 2009 HP acquired switch maker 3Com for $2.7 billion.
- 2010 saw HP spend $2.35 billion on the acquisition of 3PAR.
- In 2015, HP spun out its software, services, PCs, and printers to a new firm called HP Inc.. HPE kept the server, storage, networking, tech support, consulting, and financing for data center gear businesses.
- HP acquired Aruba Networks in 2015 for $2.7 billion.
- During 2017 HPE bought flash storage maker Nimble Storage for $1 billion.
- HPE bought Cray Supercomputers in 2019.
Artificial Intelligence
HPE has already benefited from AI industry growth. It told investors in November that orders for servers containing accelerated processing units for use in Artificial Intelligence Market had added up to 32% of its server segment. Overall net revenue for 2023 was $7.4 billion.
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This latest HPE acquisition follows a familiar pattern to HPE’s other networking acquisitions over the last several decades. They seem to be trying to buy market share. And the results have been meh.
When I started in the business it was Compaq Deskpro’s on the desktop and Proliant’s were the go-to servers. We had an end-to-end 3Com network. Today we don’t buy HP desktops and the network guys don’t even know what a 3Com is. Both HPE and Juniper have struggled behind Cisco. It is unlikely the merger will change that.
HPE seems to be hanging its hat on growth in the server sector to support AI deployments. I am sure they want to bundle the Mist Artificial Intelligence on a server and a 3PAR SAN and sell it to us as a network management/security solution, at some inflated price. Who remembers HP OpenView?
Good luck HPE.
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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.






