Juniper Networks Surges Over 20% As Hewlett Packard Enterprise reportedly Nears $13B Acquisition Deal

In a potentially game-changing move, Hewlett Packard Enterprise Co HPE is reportedly in advanced discussions to acquire networking equipment competitor Juniper Networks, Inc. JNPR. This news has prompted a surge in Juniper’s stock.

What Happened: HP might be on the verge of acquiring Juniper Networks, in a deal possibly worth around $13 billion. The announcement could be made as early as this week, according to The Wall Street Journal.

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An email sent by Benzinga to Juniper Networks and Hewlett Packard Enterprise seeking comment didn’t elicit any response till the time of publishing this story.

Juniper, a leading competitor to Cisco Systems Inc CSCO in the network equipment market, had a challenging time last year. Its stock fell by about 8% in 2023, while the Nasdaq Composite and HPE saw increases of 43% and nearly 10% respectively. The acquisition would boost HPE’s competitive edge against Cisco, the top provider of networking switches, and could significantly enhance HPE’s Intelligent Edge segment, which posted a 2% revenue growth year-over-year in its most recent quarter.

Since spinning off from Hewlett-Packard in 2015, HPE has been cautious about major acquisitions, with its most significant buy being the $1.5 billion purchase of supercomputer maker Cray in 2019.

Why It Matters: The potential acquisition comes at an interesting time for Juniper Networks, as the stock has been rallying after hitting a 52-week low in October. The company’s shares rose approximately 20% during November and December. This uptick coincides with Juniper’s recent technological advancements, including the deployment of a full stack of wired and wireless upgrades by Digital Edge, a rising digital infrastructure provider in Asia.

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Hewlett Packard Enterprise. Image Via Shutterstock