Hewlett Packard Enterprise Co (NYSE:HPE, ETR:2HP) shares rose on Monday after the US Department of Justice (DOJ) approved its $14 billion all-cash acquisition of Jupiter Networks (NYSE:JNPR).
The DOJ had filed a lawsuit to block the merger over concerns it would reduce competition in wireless local area network (WLAN) technology, but HPE, Juniper, and the DOJ have reached a settlement.
As part of the settlement, HPE agreed to divest its global Instant On campus and branch WLAN business and provide limited access to Juniper's advanced Mist AI Ops technology to competitors, while maintaining the overall value of the transaction.
“Our agreement with the DOJ paves the way to close HPE’s acquisition of Juniper Networks and preserves the intended benefits of this deal for our customers and shareholders, while creating greater competition in the global networking market,” HPE CEO Antonio Neri said in a statement.
Shares of HPE were up 12.5% at about $21 in the early afternoon on Monday. Jupiter Networks shares added 8.4% just shy of $40.