Hewlett Packard Enterprise, Juniper Networks Stocks Jump as DOJ Approves Deal
Regulators had filed suit to block the merger, pointing to concerns about limiting competition in wireless local area network (WLAN) technology.
The deal requires Hewlett Packard Enterprise to divest its Instant On WLAN business and make Juniper's AI Ops for Mist source code open to other firms.Shares of Hewlett Packard Enterprise (HPE) and Juniper Networks (JNPR) jumped Monday after the two tech firms and the Department of Justice (DOJ) announced they had reached a deal to allow HPE's $14 billion purchase of Juniper to go through.
Regulators had filed a lawsuit in January to block the acquisition, arguing that because of the companies' strength in wireless local area network (WLAN) technology, the combination "would eliminate fierce head-to-head competition between the companies, raise prices, reduce innovation, and diminish choice for scores of American businesses and institutions."
HPE, Juniper, and the DOJ said the settlement satisfies the government's requirements, including having HPE divest its global Instant On campus and branch WLAN business, and that the merged firm will make Juniper's AI Ops for Mist source code available to rivals.
The purchase of Juniper by the provider of IT solutions to businesses was aimed at boosting HPE's position in the booming market for artificial intelligence products. "For the first time, customers will now have a modern network architecture alternative that can best support the demands of AI workloads," HPE CEO Antonio Neri said.
The news lifted Juniper Networks shares 8% and into positive territory for 2025. Shares of Hewlett Packard Enterprise soared 11% to lead early S&P 500 gainers Monday but remain in the red for the year.
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