Hewlett Packard Enterprise has settled with the Justice Department that would clear the path of its $14 billion takeover of rival Juniper Network.
The Justice Department has sued to block the acquisition, saying it can eliminate competition, raise prices and reduce innovation.
The settlement was approved by the court to require HP Parker Enterprise to divest its global moments on campus and branch businesses. Once the transaction is completed, HP Enterprises will have limited access to Juniper’s advanced fog AIOPS technology.
“Our agreement with the Department of Justice paved the way to end HPE’s acquisition of Juniper Networks and retained the expected gains from the deal for our customers and shareholders, while creating greater competition in the global network market,” said Antonio Neri, president and CEO of HPE, in a statement.
Last year, Hewlett Packard Enterprise announced that it would buy Juniper Networks for $40 per share, which is expected to double HPE’s networking business. Juniper offers routers, switch gears and cybersecurity products from its Sunnyvale, California headquarters.
The Justice Department’s intervention – the first of the new administration, and just 10 days after Donald Trump’s inauguration, was surprising at the time. Most predict that the second Trump administration will ease antitrust enforcement and accept mergers and deals more after years of over-maintenance under the surveillance of former President Joe Biden.
Shares of HP Enterprises soared more than 12% in trading Monday afternoon, while shares of Juniper Networks rose more than 8%.
