(AOF) – Hewlett Packard Enterprise (HPE) announced the acquisition of Juniper Networks, for approximately $14 billion, in order to improve its competitiveness in the era of artificial intelligence. The Wall Street Journal mentioned such an operation yesterday, but for an amount of 13 billion dollars. The group specializing in IT equipment and services for businesses is offering $40 in cash per share of the networking specialist, which represents a premium of 32% compared to Tuesday’s closing price.
The transaction is expected to be accretive to adjusted earnings per share and free cash flow within the first year following closing of the transaction. This is expected at the end of 2024 or at the beginning of 2025.
The combination is expected to deliver operational efficiencies and annual cost synergies of $450 million within 36 months of closing.
This acquisition should allow HPE to double its activities in the field of networks. They will be led by Rami Rahim, CEO of Juniper Networks.