Hewlett Packard Enterprise (HPE) has finalized a settlement agreement with the Justice Department, potentially allowing its ambitious $14 billion acquisition of competitor Juniper Networks to proceed. The Justice Department originally challenged the acquisition, citing concerns that it could stifle competition, increase prices, and hinder innovation.
For the settlement, which is awaiting court approval, HPE has agreed to sell off its global Instant On campus and branch business. Moreover, after the acquisition is complete, HPE will grant limited access to Juniper’s advanced Mist AIOps technology. “This settlement with the DOJ facilitates the completion of HPE’s acquisition of Juniper Networks, maintaining the anticipated benefits of this merger for our clients and shareholders while promoting enhanced competition in the global networking market,” stated Antonio Neri, HPE’s president and CEO.
HPE announced its plan to acquire Juniper Networks last year, offering $40 per share in a deal intended to significantly expand its networking business. Juniper is known for its production of routers, switches, and network security solutions, operating out of its base in Sunnyvale, California.
The intervention by the Justice Department, which marked the first such action under the new administration just ten days after Donald Trump was inaugurated, caught many by surprise. It was largely expected that a continuation of the Trump administration would ease antitrust scrutiny and adopt a more merger-friendly stance after the rigorous oversight seen during former President Joe Biden’s tenure.
Following the news of the settlement, Hewlett Packard Enterprise’s stock saw an increase of over 12% in trading on Monday afternoon, while shares of Juniper Networks rose by more than 8%.