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.

See Also: Trump’s Niece Says AG Letitia James Has ‘Screwed’ Former President ‘More Than You Think’

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.

Read Next: Should Trump Be On Primary Ballots? Majority Of Americans Agree As GOP Voters Now Feel Less Strongly About Jan. 6 Riots, New Poll Finds

Hewlett Packard Enterprise. Image Via Shutterstock


Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote


The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.


Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesM&ANewsMarketsTechacquisitionHewlett Packard EnterpriseHPEJuniper NetworksKaustubh Bagalkote
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!