HPE's $14 billion acquisition of Juniper approved, Juniper stock locked at $40

Juniper Networks (NYSE: JNPR) shares rose to $39.95 after the DOJ settled its antitrust lawsuit, clearing the way for Hewlett-Packard Enterprise’s (NYSE: HPE) $14 billion acquisition of Juniper. The deal includes divestitures and Mist AI source code access. The deal is expected to close in Q3 2025 pending court approval and a public comment period.

The acquisition, announced in early 2024, aims to expand HPE’s AI-driven networking capabilities to compete with Cisco Systems (NASDAQ: CSCO). The settlement includes offloading Instant On and licensing Mist AIOps. Once closed, Juniper shareholders will receive $40 per share, limiting upside for investors unless delays occur. Integration and execution are key for HPE post-acquisition.

HPE CEO sees the deal as strategic, strengthening its position in AI data centers, cloud environments, and telecom networks. Customers will benefit from a deeper product portfolio and enhanced AI capabilities. However, vendor diversity may decrease. HPE’s valuation looks cheap but highlights weak cash efficiency and thin profitability.

With the DOJ hurdle cleared, Juniper’s stock is essentially locked at $40. The focus now shifts to court approval, divestitures execution, and synergy signs in upcoming earnings. Investors may find better returns in HPE’s post-merger performance. Consider diversifying with Trefis High Quality Portfolio for lower risk and better returns compared to individual stocks.

Read more at Nasdaq: What’s Next for Juniper Stock Now That the HPE Merger Is Approved?