Hewlett Packard Enterprise to buy Juniper Networks in $14 billion deal
(Reuters) -Hewlett Packard Enterprise will buy networking gear maker Juniper Networks (NYSE:JNPR) for $14 billion, in an attempt to spruce up the company's artificial intelligence offerings.
HPE offered $40 per share to Juniper shareholders, the companies said on Tuesday. That represents a 32.4% premium to the stock's close on Monday, when the news of the deal first emerged.
The acquisition comes at a time when the AI gold rush has led companies to pour billions into upgrading and developing new wares.
HPE, grappling with sluggish demand in its traditional server business, is looking to tap into Juniper's offerings such as network security and AI-enabled enterprise networking operations (AIOps).
Weak demand from inflation-hit wireless carriers and cable operators, as well as stiff competition from Cisco Systems (NASDAQ:CSCO) and Nvidia (NASDAQ:NVDA) in the networking space has been a drag on Juniper.
Shares of Juniper were up 0.5% after the bell, while those of HPE were largely flat.
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