January 10,2024

Hewlett Packard Enterprise to Acquire Juniper Networks

Financial Information ($USD)
  • Enterprise Value: $14.0 Billion
  • EV/LTM Revenue: 2.48x
  • EV/LTM EBITDA: 20.91x

 

Transaction Details
  • Hewlett Packard Enterprise (NYSE: HPE) and Juniper Networks, Inc. (NYSE: JNPR), a leader in AI-native networks, today announced that the companies have entered a definitive agreement under which HPE will acquire Juniper in an all-cash transaction for $40.00 per share, representing an equity value of approximately $14 billion.
  • The purchase price represents a premium of approximately 32% to the unaffected closing price of Juniper’s common stock on January 8, 2024, the last full trading day prior to media reports regarding a possible transaction.
  • The transaction is expected to be accretive to non-GAAP EPS and free cash flow in the first year post close.
  • The acquisition is expected to double HPE’s networking business, creating a new networking leader with a comprehensive portfolio that presents customers and partners with a compelling new choice to drive business value.
  • The transaction is currently expected to close in late calendar year 2024 or early calendar year 2025, subject to receipt of regulatory approvals, approval of the transaction by Juniper shareholders, and satisfaction of other customary closing conditions.

 

martinwolf Analysis
  • HP History:
    • On November 18, 1999 Agilent spun out of HP.
    • Agilent has a market cap of around $38.25 billion.
    • On November 2, 2015 Hewlett-Packard split into HPQ and HPE.
    • HPE has a market cap of $21.35B and HPQ has a market cap of $30.06B.
  • Microsoft Dominance:
    • Just to put this in context, Microsoft has had share price movements after earnings that are greater than the combined value of HPE, HPQ, Agilent, and Juniper.

 

HPE Past Acquisitions
  • 65 total acquisitions since 2002 (excluding Juniper)
    • Compaq for $25B in March 2002
    • Mercury Interactive for $4.5B in July 2006
    • Opsware for $1.6B in July 2007
    • Electronic Data Systems $13.9B in May 2008
    • 3Com for $2.7B in November 2009
    • Palm Technologies for $1.2B in April 2010
    • Phoenix Technologies for $12M in June 2010
    • Stratavia for an undisclosed amount in August 2010
    • 3PAR for $2.35B in September 2010
    • ArcSight for $1.5B in October 2010
    • Vertica Systems Inc for $350M in February 2011
    • Autonomy Corporation for $11B in August 2011

 

 

 

For more information about this transaction,

view the press release from HPE here.

martinwolf was not the advisor in this transaction.

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