Hewlett Packard Enterprises (HPE) has entered into a definitive agreement to acquire Juniper Networks for around $14 billion.

Juniper, a leader in the AI-native networks space, provides AI-enabled enterprise networking operations and software-defined networking technologies.

The companies said the explosion of AI and hybrid cloud-driven business is accelerating demand for secure, unified technology solutions that connect, protect, and analyse companies’ data from edge to cloud and that the acquisition is expected to double the size of HPE’s existing networking business.

They added that by using “industry-leading AI”, the combined company is expected to create better user and operator experiences, benefitting customers’ high-performance networks and cloud datacentres.

Once the acquisition completes, Juniper chief executive Rami Rahim will lead the combined HPE networking business and report to HPE president and chief executive Antonio Neri.

“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 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.”

HP will complete the acquisition as an all-cash agreement at $40 per share, with J.P. Morgan Securities and Qatalyst Partners serving as its financial advisors.

---