Shares of Hewlett Packard Enterprise Co. and Juniper Networks Inc. surged Monday after the tech companies reached a settlement with the U.S. Department of Justice on their proposed USD14 billion merger, under a settlement that addresses competition concerns.
The Justice Department initially challenged the acquisition, warning it could stifle competition, drive up prices, and slow innovation in the enterprise networking space.
Juniper shares closed 8.5 percent higher at USD 39.93, while HPE jumped 11 percent to USD 20.45 on potential gains from the merger.
The DOJ’s settlement requires HPE to divest its Instant On campus and branch WLAN business—and related assets, IP, R&D teams, and customer contracts—within 180 days to a government-approved buyer.
As well, the agreement mandates a perpetual, non-exclusive license of Juniper’s AI-powered Mist operating system to independent rivals. This includes transitional support and personnel transfers, safeguarding broad access to advanced WLAN innovation and preserving competitive dynamics in software-defined networking.
Justice Department officials said that by licensing key software and enforcing divestitures, the settlement ensures market access and choice for enterprise networking customers, while protecting innovation.
Even so, the combined company will still double networking footprint of HPE, with Juniper providing expertise in AI networking, cloud and security, and HPE delivering edge-to-cloud platform-as-a-service offerings.
Analysts suggest the cleared merger positions HPE to better compete with networking giants. The divestiture and licensing terms aim to ease regulatory concerns while enabling HPE to capitalize on AI-led growth.
