Antonio Neri, president and chief govt officer of Hewitt Packerd Enterprise (HPE), speaks in the course of the HPE Discovery CIO Summit in Las Vegas, Nevada, U.S., on Tuesday, June 19, 2018. The summit brings collectively specialists and trade leaders to discover the essential components CIO’s should deal with to allow velocity and agility, together with individuals, use of knowledge and approaches to safety, governance and management. Photographer: Bridget Bennett/Bloomberg through Getty Images
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Hewlett Packard Enterprise stated in a statement on Tuesday that it plans to purchase information middle networking {hardware} maker Juniper Networks for about $14 billion, or $40 per share, in an all-cash deal.
The announcement got here a day after the Wall Street Journal reported on HPE’s curiosity in shopping for Juniper.
Juniper shares had their finest day in 20 years on Tuesday after the Wall Street Journal report, which stated a deal may very well be introduced this week. The shares jumped 22% to shut at $37.05.
HPE stated the deal can be accretive to its adjusted earnings per share within the first 12 months after it closes.
The acquisition would double HPE’s present networking enterprise. If it is accomplished, Juniper CEO Rami Rahim would lead the mixed group and report to HPE’s CEO, Antonio Neri.
HP bought deeper into the class when it purchased Aruba Networks in 2015, and months later, the expertise conglomerate cut up in two, ensuing within the formation of HPE, which sells servers and different tools for information facilities, and HP Inc., which makes PCs and printers.
Founded in 1996, Juniper spent a few years chasing Cisco out there for networking gear. Revenue elevated 12% final 12 months, the quickest progress since 2010.
— CNBC’s Ari Levy contributed to this report.
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