Hewlett Packard Enterprise Co (NYSE:HPE) will acquire networking hardware company Juniper Networks for roughly $14 billion, the company announced Tuesday.
The all-cash deal values Juniper at $40 per share, and the company’s stock jumped more nearly 22% Tuesday to $36.81. HPE shares fell nearly 9% to $16.14.
HPE said it expects the deal to close later this year or early in 2025, noting that the move would be accretive to its adjusted earnings per share in the first year after closing.
“HPE’s acquisition of Juniper represents an important inflection point in the industry and will change the dynamics in the networking market and provide customers and partners with a new alternative that meets their toughest demands,” HPE CEO Antonio Neri said in a statement.
If the deal goes through, Juniper CEO Rami Rahim will lead the combined company’s networking business, according to a statement.
Shortly before HPE and HP Inc (NYSE:HPQ) split, HP got into the networking business when it acquired Aruba Networks in 2015. Now, HPE adds a company that bolsters the segment that was its top source of earnings at $401 million in the most recent quarter.
The deal is expected to result in $450 million in annual cost savings within three years of closing, HPE said.