Hewlett Packard Enterprise To Acquire Juniper Networks In $14 Bln Deal

(RTTNews) - Hewlett Packard Enterprise (HPE) agreed to acquire Juniper Networks Inc. (JNPR) in an all-cash transaction for $40.00 per share, representing an equity value of about $14 billion, the companies said in a statement on Tuesday.

The purchase price represents a premium of about 32% to the unaffected closing price of Juniper's common stock on January 8, 2024, the last full trading day prior to media reports regarding a possible transaction.

JNPR closed Tuesday's regular trading at $36.81 up $6.59 or 21.81%. In the after-hours trading the stock further gained $0.20 or 0.54%.

Hewlett Packard Enterprise expects that the transaction will be accretive to non-GAAP earnings per share and free cash flow in the first year post close.

Hewlett Packard Enterprise expects that the transaction will be funded based on financing commitments for $14 billion in term loans.

The merger is expected to achieve operating efficiencies and run-rate annual cost synergies of $450 million within 36 months post close.

Upon completion of the transaction, Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to HPE President and CEO Antonio Neri.

The transaction is currently expected to close in late calendar year 2024 or early calendar year 2025.