HPE Agrees on DOJ Settlement for $14bn Juniper Merger

Hewlett Packard Enterprise (HPE) and Juniper Networks have reached a settlement with the U.S. Department of Justice (DOJ) to proceed with their merger, initially announced in January as a $14 billion all-cash deal valued at $40 per share. The DOJ had sued to block the merger due to concerns that it would stifle competition in the U.S. networking equipment market, potentially leaving only Cisco Systems and HPE in control of over 70% of the market. As part of the agreement, which is pending court approval, HPE will divest its global Instant On campus and branch WLAN business and have an auction for the licensing of Juniper's AI operations for Mist source code. These conditions aim to maintain competition by ensuring key software assets are available to rivals. Antonio Neri, HPE's CEO, expressed that the deal would enhance customer benefits and increase competition in the networking sector, particularly in AI transformations and hybrid cloud solutions. Similarly, Rami Rahim, CEO of Juniper Networks, highlighted the deal's importance in providing a comprehensive, secure networking portfolio. The Department of Justice's legal intervention and eventual settlement showcase the balance between enabling significant industry mergers while preserving competitive dynamics.