HPE has confirmed it will acquire network gear maker Juniper Networks for $14 billion.

The companies confirmed the all-cash transaction this week, after reports circulated a deal was close. The deal has been approved by the boards of both companies.

– Juniper Networks

The acquisition is expected to double HPE’s networking business and “create a new networking leader with a comprehensive portfolio,” according to the companies.

“The explosion of AI and hybrid cloud-driven business is accelerating demand for secure, unified technology solutions that connect, protect, and analyze companies’ data from Edge to cloud,” HPE said.

Financing for the deal will include a combination of new debt, mandatory convertible preferred securities, and cash on the balance sheet. The transaction is expected to close in late 2024 or early 2025, subject to receipt of regulatory approvals, Juniper shareholder approval, and other customary closing conditions.

“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,” said HPE CEO Antonio Neri.

“This transaction will strengthen HPE’s position at the nexus of accelerating macro-AI trends, expand our total addressable market, and drive further innovation for customers as we help bridge the AI-native and cloud-native worlds, while also generating significant value for shareholders. I am excited to welcome Juniper’s talented employees to our team as we bring together two companies with complementary portfolios and proven track records of driving innovation within the industry.”

Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to Neri.

“Our multi-year focus on innovative, secure AI-native solutions has driven Juniper Networks’ outstanding performance,” said Junpier’s Rahim. “We have successfully delivered exceptional user experiences and simplified operations, and by joining HPE, I believe we can accelerate the next phase of our journey. In addition, this combination maximizes value for our shareholders through a meaningful all-cash premium. We look forward to working with the talented HPE team to drive innovation for enterprise, service provider and cloud customers across all domains, including campus, branch, data center and the wide area network.”

Founded in 1996 and based in Sunnyvale, California, NYSE-listed Juniper provides networking products, including routers, switches, network management software, network security products, and software-defined networking (SDN) technology.

HPE offers switches via its Aruba Networks unit – acquired in 2015 just prior to Hewlett Packard's split into two companies.

Since it was broken off from HP in 2015, HPE’s acquisitions include SGI, Cray, SimpliVity, and Nimble Storage. This is HPE’s largest deal since becoming a standalone company by a wide margin and one of the largest in HP’s long history.