US DOJ settles antitrust case for HPE's $14 billion takeover of Juniper
FILE PHOTO: Figurines with computers and smartphones are seen in front of Hewlett Packard Enterprise logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -The U.S. Department of Justice has settled its lawsuit challenging server maker Hewlett Packard Enterprise's all-cash acquisition of Juniper Networks for $14 billion, according to court filings.
The settlement requires the combined company to divest HPE's Instant On wireless networking business and license the source code for Juniper's Mist AI software used in Juniper's WLAN (Wireless Local Area Network) products.
The joint settlement, filed late on Friday, requires approval by a judge and would avoid the need for a trial scheduled for July 9.
The Department of Justice (DOJ), HPE and Juniper did not immediately respond to a Reuters request for comment outside business hours.
The DOJ sued to block the deal in January, arguing that it would stifle competition and lead to only two companies — Cisco Systems and HPE — controlling more than 70% of the U.S. market for networking equipment.
In February, Juniper denied the DOJ's allegations, saying in a filing that the complaint does not correctly represent the market dynamics for wireless network solutions and the companies' rationale for the deal.
HPE said more than a year ago that it would acquire Juniper, as it looks to spruce up its artificial intelligence offerings.
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Alexandra Hudson and Timothy Heritage)
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