Hewlett Packard Enterprise (HPE) will buy Juniper Networks (JNPR) for $14 billion, the companies announced Tuesday night. HPE stock edged lower while Juniper edged higher, after big moves on reports that a deal was close.
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Cloud-services provider HP Enterprise will pay $40 a share cash for Juniper Networks. The deal has an equity value of $14 billion. HPE said the deal will double its networking business and accelerate AI-driven innovation.
HPE expects the deal will boost non-GAAP earnings per share and free cash flow in the first year after closing.
HPE stock fell a fraction Tuesday night, while JNPR stock edged higher.
In Tuesday’s session, HPE dived 8.9% to 16.14, tumbling below a 17.29 buy point. JNPR stock soared nearly 22% to 36.81, the highest since a long-term peak of 38.14 in March 2022.
The Wall Street Journal reported Monday night that HPE and Juniper were in late-stage talks.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
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