{"id":46111,"date":"2024-01-10T10:08:06","date_gmt":"2024-01-10T10:08:06","guid":{"rendered":"https:\/\/news.pakistaninewspaperlist.com\/hewlett-packard-to-buy-juniper-networks-in-14-billion-deal-the-express-tribune\/"},"modified":"2024-01-10T10:08:06","modified_gmt":"2024-01-10T10:08:06","slug":"hewlett-packard-to-buy-juniper-networks-in-14-billion-deal-the-express-tribune","status":"publish","type":"post","link":"https:\/\/pakistaninewspaperlist.com\/news\/hewlett-packard-to-buy-juniper-networks-in-14-billion-deal-the-express-tribune\/","title":{"rendered":"Hewlett Packard to buy Juniper Networks in $14 billion deal | The Express Tribune"},"content":{"rendered":"
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Hewlett Packard Enterprise\u00a0will buy networking gear maker Juniper Networks\u00a0for $14 billion in an all-cash deal, in an attempt to spruce up the company’s artificial intelligence (AI) offerings.<\/p>\n

HPE offered $40 per share to Juniper shareholders, the companies said on Tuesday. That represents a 32.4% premium to the stock’s close on Monday, when the news of the deal first emerged.<\/p>\n

The acquisition comes at a time when the AI gold rush has led companies to pour billions of dollars into upgrading and developing new wares and is expected to double HPE’s networking business.<\/p>\n

HPE, grappling with sluggish demand in its traditional server business, is looking to tap into Juniper’s offerings such as network security and AI-enabled enterprise networking operations (AIOps).<\/p>\n

Weak demand from inflation-hit wireless carriers and cable operators, as well as stiff competition from Cisco Systems\u00a0and Nvidia\u00a0in the networking space has been a drag on Juniper.<\/p>\n

Shares of Juniper were up 0.5% in extended trading after the bell, while those of HPE were largely flat.<\/p>\n

The deal is expected to be accretive to HPE’s non-GAAP earnings and free cash flow in the first year post completion, the companies said.<\/p>\n

The transaction is expected to be funded through financing commitments for $14 billion in term loans and is likely to close in late 2024 or early 2025, subject to regulatory approvals.<\/p>\n

J.P. Morgan Securities LLC and Qatalyst Partners are serving as HPE’s financial advisors.<\/p>\n<\/div>\n