It is expected that the American information technology company, Hewlett Packard Enterprise (HPE), will acquire Juniper Networks, a telecommunications equipment specialist, for $14 billion, according to a statement released last Tuesday. This strategic move aims to accelerate HPE’s advancements in artificial intelligence, as reported by Agence France-Presse.
The acquisition could position HPE, which focuses on cloud computing, data analytics, and cybersecurity, as a major player in the information technology infrastructure through a fully funded transaction.
In a joint statement, the two companies noted, “The surge in artificial intelligence and remote computing is increasing demand for technological solutions that connect, protect, and analyze enterprise data, from cloud computing to edge computing.”
The advent of generative artificial intelligence, boosted by the launch of “OpenAI” in November 2022, has led many companies to increase their needs in IT engineering and capabilities, as it requires significant computing power.
Antonio Neri, the CEO of HPE, commented in the statement, “This acquisition will enhance HPE’s position at the crossroads of artificial intelligence trends, expand our potential customer base, and drive towards innovation.”
HPE was established in 2015 after the split of the historical information technology group, Hewlett-Packard. The company decided to consolidate its infrastructure, software, and business services activities under HPE, while HP continued to produce personal computers and printers.
HPE plans to finalize the Juniper acquisition by the end of 2024 or early 2025. The company anticipates achieving cost savings of up to $450 million annually within three years after the acquisition.
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