Is HPE buying Juniper networks

 

In a sudden decision, Hewlett Packard announced that it would be acquiring Juniper Networks. Given that the purchase price was more than 8% higher than Juniper Networks' closing price today and 35% higher than its closing price yesterday, a lot of people are surprised by this transaction.

 

Hewlett-Packard Enterprise, also known as HP, is an universal information technology company, offering services, software, and hardware to a variety of companies.

 

Juniper Networks is a networking technology manufacturer with emphasis on network firewalls, routers, switching devices, and other stuff.

 

Analysts believe that Hewlett Packard Enterprise's (HPE) $14 billion all-cash acquisition of Juniper Networks (JNPR) will reshape the computer networking market, providing Cisco Systems (CSCO) and others with a more formidable competitor. HPE's stock has underperformed over the past year despite significant gains made by other tech giants, with only modest sales growth.

Late on Tuesday, HPE made the announcement. For Juniper, the business agreed to pay $40 per share.

 "With more data centre switching, routing, and security," added to its product roster, "we believe the move plugs a few holes for HPE," according to a report by Barclays analyst Tim Long.

 In the first year following closing, HPE anticipates that the purchase will be earnings and free cash flow accretive. It is anticipated that the acquisition would finalise in early or late 2025.