HPE and Juniper announce agreement for corporate fusion
Hewlett Packard Enterprise (HPE) has officially completed its $14 billion acquisition of Juniper Networks on July 2, 2025, following the resolution of legal challenges posed by the U.S. Department of Justice (DOJ). The deal, initially announced in January 2024 at $40 per share, significantly expands HPE's networking business and strategically positions the company to provide a more comprehensive, AI-driven, cloud-native networking portfolio aimed at meeting the demands of the hybrid cloud and AI market.
The acquisition, which doubles the size of HPE's networking business, comes after a series of events that included an antitrust lawsuit filed by the DOJ in January 2025. The lawsuit argued that the merger would reduce competition by leaving HPE and Cisco Systems controlling over 70% of the U.S. networking equipment market, potentially leading to higher prices and less innovation.
To address these concerns, the DOJ imposed certain conditions on the merger. HPE is required to sell off its Instant On wireless networking business, catering primarily to small and medium businesses (SMBs) and public entities, to a DOJ-approved buyer within 180 days. The company is also mandated to hold an auction to license Juniper’s advanced Mist AIOps source code for WLAN products to independent competitors. This license will be perpetual and non-exclusive, with options for transitional support and personnel transfers to ensure ongoing market competition.
The DOJ’s approval of these conditions averted a court trial scheduled for July 9, allowing the acquisition to proceed. The European Commission and the UK's Competition and Markets Authority also granted approval to the merger a couple of weeks apart, with the European Commission finding "no competition concerns in the European Economic Area" nearly a year ago.
The acquisition significantly expands HPE's networking portfolio, enabling it to offer a "complete portfolio of modern, secure networking solutions" that support hybrid cloud environments and AI-driven operations. According to CEO Antonio Neri, this deal "begins a new era for HPE," positioning the company at the forefront of IT transformation by integrating Juniper’s technology stacking with HPE’s existing offerings.
The networking business, with Juniper included, is expected to contribute substantially to HPE’s revenue growth and shift its portfolio toward “higher-margin, higher-growth sectors,” enhancing long-term profitability. The combined networking business of HPE is projected to account for more than half of the company's entire operating income, which was $7.6 billion, up 6%, in its most recent quarter.
Despite the conditions imposed by the DOJ, HPE gained quick approval from regulatory bodies in Europe and the UK. The company is planning to cut thousands of employees, despite the rise in its results, to focus on higher-margin, higher-growth areas. HPE's vision for customers includes access to silicon, hardware, operating system, security, software, and services all in one place.
Juniper Networks CEO Rami Rahim described the merger as an opportunity to disrupt the networking industry, and the combined networking business of HPE is expected to create "long-term profitable revenue growth."
The acquisition of Juniper Networks by Hewlett Packard Enterprise, following the resolution of antitrust concerns, signals a strategic move to bolster HPE's networking portfolio and position the company at the forefront of IT transformation with a complete offering of modern, secure networking solutions. With the integration of Juniper's technology stack, HPE aims to create long-term profitable revenue growth for both companies.
