HPE to take over Juniper Networks: What does this mean for the financial market?

HPE to take over Juniper Networks: What does this mean for the financial market?

According to a report by www.golem.de, Hewlett Packard Enterprise is close to purchasing Juniper Networks for about $13 billion. HPE shares closed Monday at $17.72, giving it a market capitalization of about $23 billion. According to the Wall Street Journal's information, Juniper's Mist AI for an AI-controlled WLAN is a decisive factor for HPE's purchase.

Juniper Networks is based in Sunnyvale, California and develops routers, switches, network management software and security products. The company originally focused on core routers for ISPs and telcos and is the third largest provider of routers and switches to ISPs, as well as the fourth largest manufacturer of edge routers and No. 2 manufacturer of core routers, according to Dell'Oro Group. Juniper is the second largest provider of firewall products and security equipment for data centers.

However, it should be noted that Juniper hit the headlines in 2020 when it reported to the US Congress that the company had installed a backdoor in its products at the request of the US secret service NSA, which was discovered and used by a third country.

Hewlett Packard Enterprise's potential purchase of Juniper Networks could have a major impact on the IT infrastructure and networking industries. An acquisition of this magnitude could lead to market consolidation and change the competitive landscape. In addition, Juniper Networks' reputation could be called into question due to the backdoor revelations, which could potentially impact customer relationships. It remains to be seen how the market results will develop once the purchase is completed.