Hewlett Packard Enterprise has agreed to acquire Juniper Networks for $14 billion, sparking a preliminary investigation by the UK Competition and Markets Authority to assess potential market implications. The UK regulator is evaluating whether the deal could impact competition within the domestic market and is seeking feedback from interested parties until July 3, with a decision to refer for further investigation set for August 14. HPE’s acquisition of Juniper Networks would double its networking business, increasing from 18% to 31% of its total annual revenue based on 2023 figures, making the combined networking business make up over 56% of its total operating revenue. This move is part of HPE’s strategy to shift towards higher-growth solutions and higher-margin businesses, aligning with the growing demand for AI-driven tools for digital transformation from edge to cloud. Both companies aim to achieve joint operational efficiencies and cost synergies of $450 million per year within 36 months of closing the deal, anticipated to occur in late 2024 or early 2025 pending regulatory and shareholder approvals. Antonio Neri, HPE’s President and CEO, has expressed confidence in the transaction’s progress through the regulatory process and the expected timeline for completion.
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https://www.rcrwireless.com/20240621/networks/uk-regulator-kicks-off-investigation-hpe-juniper-deal
