HPE and Juniper Networks: accelerating value for customers

FEBRUARY 6, 2024 • BLOG POST • ANTONIO NERI, PRESIDENT & CEO

IN THIS ARTICLE

  • We will be integrating two of the most innovative and competitive organizations in the networking industry and will disrupt the status quo
  • For now, we continue business as usual, with HPE and Juniper maintaining our current product lines and services
  • We are committed to delivering solutions that advance the way people work and live – this is the case today and will continue to be true in the future

The combination of HPE and Juniper Networks will radically change the networking industry and offer greater choice to customers

It has been nearly one month since we announced we entered into a definitive agreement to acquire Juniper Networks. The proposed acquisition presents an immense opportunity for HPE and our stakeholders, and it has ignited excitement among our customers and partners.

The proposed acquisition of Juniper Networks accelerates our opportunity to capture the immense opportunity AI presents to us by delivering a modern AI-driven networking fabric to train and deploy AI applications, while pivoting our HPE portfolio mix to higher growth and higher gross margin areas of the market. Juniper Networks complements our amazing HPE Aruba Networking portfolio in Campus and Branch and turbo charges the opportunity to accelerate growth in the AI, Data Center, Service Provider and Cloud segments. 

Our objective is to better address customer challenges by integrating two of the most innovative and competitive organizations in the networking industry and disrupt the status quo. Our combined business will create a new full-service networking company, with a customer-centric approach to product development and a comprehensive portfolio that delivers value for our customers. 

We are pursuing this acquisition because we believe the combination of HPE and Juniper Networks will radically change the networking industry – not by eliminating products from either portfolio – but by creating greater choice in this sector. The incredible thing about a combination like this one is that there are strong offerings on both sides and by bringing them together, we will be accelerating value and flexibility for all of our customers. While it is too early for us to make any decisions or announcements regarding future product roadmaps, my commitment is that all HPE portfolio decisions will continue to be made carefully and thoughtfully.

The acquisition is expected to close in late calendar year 2024 or early calendar year 2025. For now, we continue business as usual, with HPE and Juniper maintaining their current product lines and services. All of the products HPE currently offers for sale, including hardware, services, and solutions delivered via HPE Aruba Networking Central, remain available for purchase and all of our standard end-of-life policies remain in effect.

HPE is committed to moving through the transaction and subsequent integration process with minimal disruption to our customers and partners. We will maintain our ongoing interactions with customers, hold events like the Atmosphere Edge program at HPE Discover and customer and partner advisory board meetings, and continue all our regular engagements.

HPE has a proven track record of seamlessly integrating new products into our portfolio. With the acquisition of Juniper Networks, we intend to continue this approach, ensuring that our customers and partners receive uninterrupted service while benefiting from an expanded set of offerings. Whether it's an existing product or a newly acquired one, we will honour our product lifecycle commitments and maintain the strong support practices our customers value.

We are committed to delivering products and solutions that solve real problems for our customers and advance the way people work and live – this is the case today and will continue to be true in the future.

Part of what makes the acquisition of Juniper Networks so compelling is that they share this commitment. Together, we will be able to drive more innovation, faster.  And that is a good thing: for us, for our customers and partners, and for the entire industry. 

Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the federal securities laws, including safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements involve risks, uncertainties and assumptions and are based on Juniper’s and HPE’s current expectations, estimates, projections, beliefs and assumptions made by Juniper and HPE, all of which are subject to change. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” and similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond Juniper’s and HPE’s control, and are not guarantees of future results. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements and you should not place undue reliance on any such statements, and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the completion of the proposed transaction on anticipated terms and timing or at all, including obtaining stockholder and regulatory approvals and other conditions to the completion of the transaction; (ii) the ability of HPE to integrate and implement its plans, forecasts and other expectations with respect to Juniper’s business after the completion of the proposed transaction and realize additional opportunities for growth and innovation; (iii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement; (iv) Juniper’s and HPE’s ability to implement their respective business strategies; (v) potential significant transaction costs associated with the proposed transaction; (vi) the risks related to HPE’s financing of the proposed transaction, (vii) potential litigation or regulatory actions relating to the proposed transaction; (viii) the risk that disruptions from the proposed transaction will harm Juniper’s or HPE’s business, including current plans and operations, and risks related to diverting management’s attention from Juniper’s and HPE’s ongoing business operations and relationships; (ix) the ability of Juniper and HPE to retain and hire key personnel; (x) potential adverse business uncertainty resulting from the announcement, pendency or completion of the proposed transaction, including restrictions during the pendency of the proposed transaction that may impact Juniper’s and HPE’s ability to pursue certain business opportunities or strategic transactions; (xi) legal, regulatory, tax and economic developments affecting Juniper’s and HPE’s business; (xii) the unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak of war or hostilities or current or future pandemics or epidemics, as well as Juniper’s and HPE’s response to any of the aforementioned factors; and (xiii) other risks described in Juniper’s and HPE’s filings with the SEC, such risks and uncertainties described under the headings “Forward-Looking Statements,” “Risk Factors” and other sections of HPE’s Annual Report on Form 10-K for its fiscal year ended October 31, 2023, Juniper’s Annual Report on Form 10-K for its fiscal year ended December 31, 2022, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings made by HPE or Juniper from time to time with the SEC. These risks should not be considered a complete statement of all potential risks and uncertainty, and are discussed more fully, along with other risks associated with the proposed transaction, in the Proxy Statement (as defined below) to be filed with the SEC in connection with the proposed transaction. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Juniper and HPE do not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

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