HPE is reportedly closing in on a $13bn deal to land networking rival Juniper Networks, in a move that would dwarf its previous M&A manoeuvres in the space.
The enterprise tech vendor is in “advanced talks” to buy its fellow NYSE-listed outfit, according to a report by the Wall Street Journal yesterday.
Though not confirmed by either party, Juniper’s shares leapt by over 20% on the news.
A deal between the pair could be announced “as soon as this week, according to people familiar with the matter, assuming the talks don’t fall apart”, the report said.
Juniper Networks is a similar size to HPE’s Intelligent Edge unit, with both businesses turning over $1.4bn in their most recent quarters.
HPE’s total revenues stood at $7bn during the three-month period.
In its most recent Q3, service provider-focused Juniper’s enterprise business represented more than 50% of total company revenues for the first time in the firm’s history, CEO Rami Rahim stressed.
HPE’s networking M&A moves
The WSJ report comes nine years after HPE (then still part of HP) leapt into the wireless networking space by acquiring Aruba Networks for $3bn, and four years after it snapped up SD-WAN outfit Silver Peak for $925m.
Juniper itself piled into the wireless space in 2019 by purchasing Mist for $405m.
Joining forces with Juniper would fortify HPE’s position in a networking space that remains dominated by Cisco.
According to IDC, the market’s 800-pound gorilla held a 47.2% and 35.9% of the global Ethernet switch and combined service provider/enterprise router market, respectively, in Q3 of 2023.
HPE had a switching marketshare of 7.1%, meanwhile, with Juniper boasting a 2.9% share in switches and 10.3% share in routers, IDC said.
An HPE spokesperson said the firm “does not comment on market rumours or speculation as a matter of company policy”
IT Channel Oxygen also reached out to Juniper for comment, and will update accordingly.