The merger between Hewlett Packard Enterprise (HPE) and Juniper Networks has received approval from the U.S. Department of Justice (DoJ), albeit with conditions. Initially announced in January 2024, this $14 billion deal aims to bolster HPE’s product range against rising AI infrastructure demands and market competition. However, the DoJ feared the merger would reduce market competition, raising concerns about higher prices and diminished innovation.
A significant sticking point was the overlap in their wireless local area network (WLAN) businesses. Despite disagreements, the companies and the DoJ arrived at a resolution, allowing the merger under specific terms. HPE agreed to divest its Instant On WLAN campus and branch network switching business, including related assets, intellectual property, and R&D personnel. This sale must be made to a DoJ-approved buyer within 180 days.
Additionally, HPE will license Juniper’s AI Ops for Mist source code through an auction process. The license will be perpetual, non-exclusive, and include optional support and personnel transfers to maintain competition. The DoJ’s initial lawsuit, filed in January, suggested that the merger of these large WLAN vendors would result in HPE and Cisco controlling over 70% of the sector.
HPE CEO Antonio Neri, pleased with the settlement, emphasized the enhanced AI capabilities expected from the merger: “The combination of HPE Aruba Networking and Juniper Networks will provide customers with a comprehensive portfolio of secure, AI-native networking solutions.” While optimistic about strengthening U.S. technological leadership, the DoJ’s decision has spurred discussions on the balance between competition and national security.
The outcome, despite HPE’s concessions, sidestepped a scheduled trial. HPE and Juniper argued that their merger would enhance America’s competitiveness in essential technological sectors, aligning with national interests. They posited that the union of their capabilities would strengthen a U.S.-based tech infrastructure, safeguarding against global security risks.