Department of Justice settles with HPE and Juniper Networks: What you need to know
The Department of Justice has reached a settlement in its lawsuit that challenged server maker Hewlett-Packard Enterprise's takeover of Juniper Networks for $14 billion, as per court filings. This comes when a trial was set to start in the matter in less than two weeks, Bloomberg reported. In an official release, the US Justice Department stated that it advised the court that a settlement was made with the two companies, adding that it allows their merger to continue. The Department of Justice has settled its lawsuit against Hewlett-Packard Enterprise's $14 billion acquisition of Juniper Networks. Photographer: Ian Maule/Bloomberg(Bloomberg)
Gail Slater, Assistant Attorney General for the Antitrust Division, has thanked all from the department for their work on the case.
Department of Justice Chief of Staff Chad Mizelle dubbed it "another key legal victory" for the division. "Our attorneys will continue fighting and winning to defend the American people and consumers,' Mizelle added.
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As part of the settlement, the combined company is required to divest HPE's Instant On wireless networking business as well as license the source code for Mist AI software of Juniper Networks. This is used in the company's Wireless Local Area Network (WLAN) products.
The joint settlement was filed late Friday night and is now seeking the approval of a judge. This could avoid the matter going to court for the scheduled trial on July 9.
A joint statement from the two companies stated that Hewlett Packard Enterprise had on January 9, 2024, announced the agreement to acquire Juniper in "an all-cash transaction". This was made for $40 per share, which represented the equity value of nearly $14 billion.
They said that the agreement has now cleared the way for the transaction to close as it has resolved the concerns of the US Justice Department.
Antonio Neri, president and CEO of HPE, said the agreement creates "greater competition in the global networking market,' besides offering customers a "modern network architecture alternative" to support the demands of AI workloads.
The department filed a complaint against the deal in the federal court in late January 2025. It claimed that the deal would stifle competition, thus paving the way for only two companies, Cisco Systems and HPE, to control over 70 per cent of the US market for networking equipment, according to Reuters.
A few weeks later, Juniper denied these allegations, stating that it failed to correctly represent the market dynamics for wireless network solutions. FAQs
1. When and where was the trial set to take place in the matter?
It was scheduled to start on July 9 in San Jose, California.
2. What does the Justice Department's settlement mean for HPE and Juniper?
This allows their merger to continue.
3. What's the merger deal?
In January last year, HPE said that an agreement was reached to acquire Juniper in an all-cash transaction for nearly $14 billion.
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