CMA examines planned merger of Hewlett Packard Enterprise and Juniper Networks

6/20/2024, 4:22 PM

The CMA sets a deadline until August 14 for the completion of the first review of the deal – Tension rises.

Eulerpool News Jun 20, 2024, 4:22 PM

The British Competition Authority (CMA) has announced an in-depth review of the planned merger between Hewlett Packard Enterprise (HPE) and Juniper Networks. The aim is to determine whether the merger will impede competition.

The CMA has set a deadline of August 14 to complete the initial review of the deal. The Texas-based IT company HPE plans to acquire the California-based artificial intelligence and networking solutions provider Juniper Networks in a transaction estimated at $14 billion in January.

In January, HPE stated that the acquisition aims to double its networking business and improve its edge-to-cloud strategy. The newly formed networking division is expected to account for around 31 percent of revenue after the merger, compared to 18 percent in 2023.

Juniper Networks, based in Sunnyvale, California, provides communication network services and equipment, such as routers and switches, to customers in the technology, telecommunications, finance, and other sectors. The company is also expanding its artificial intelligence division, Mist AI, which leverages AI and machine learning to enhance wireless access. Juniper acquired Mist Systems, as it was known then, in 2019 for approximately $400 million.

HPE, which offers cloud services for small businesses, large corporations, and governments, originated from the famous technology company Hewlett-Packard, founded in 1939 by William Hewlett and David Packard. In 2015, HPE separated from the computer and printer division, which is now known as HP.

The planned merger aims to strengthen HPE's position in the network and cloud market and maximize growth potential through the integration of Juniper's advanced AI and network solutions. The CMA will now assess whether this merger could impair competition in the market for network solutions and services.

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