Deal worth around 13 billion dollars could shake up the technology industry this week: As informed sources revealed, Hewlett Packard Enterprise (HPE) is in advanced talks to acquire communication network specialist Juniper Networks. With this move, the nearly 100-year-old company aims to strengthen its position in the age of artificial intelligence.
HPE, based in Texas, offers cloud services for customers of various sizes, ranging from small businesses to large corporations and governments. The company is a spin-off of the iconic technology corporation Hewlett-Packard, which was founded in 1939 by William Hewlett and David Packard.
The stock market value of HPE was approximately 23 billion dollars on Monday, after the stock closed at 17.72 dollars. With a stock market value of around 9.6 billion dollars, Juniper ended the trading day at 30.22 dollars. As a favorite of the New Economy era, Juniper's stocks have struggled in recent years and are currently being traded well below their former value.
The headquarters of Juniper is located in Sunnyvale, California, and the company specializes in selling communication network services and devices, such as routers and switches, to technology, telecommunications, finance, and other customers. Juniper also operates a growing business in the field of artificial intelligence called Mist AI, which claims to utilize AI and machine learning to optimize users' experiences in wireless access technology.
HPE was split into a company for enterprise services and a computer and printer manufacturer called HP in 2015. An acquisition of Juniper by HPE would be one of the largest transactions in the recent history of the technology sector.
Despite typically having the highest level of takeover activity in this industry, the technology sector is currently experiencing a slump due to a lower number of transactions, which are suffering particularly under stricter competition scrutiny in Washington.
Another major acquisition in the technology sector is also imminent: According to the Wall Street Journal, the design software company Synopsys is in advanced talks to acquire the company Ansys for approximately $35 billion in stocks and cash.
