Hewlett Packard Enterprise and Juniper Networks strongly oppose Department of Justice’s decision to file suit to block acquisition

HOUSTON & SUNNYVALE, Calif. – January 30, 2025 – Hewlett Packard Enterprise (NYSE:HPE) and Juniper Networks, Inc. (NYSE:JNPR) today responded to the filing of a complaint by the U.S. Department of Justice seeking to prohibit closing of HPE’s proposed acquisition of Juniper:

The Department of Justice’s assessment of this acquisition, in our view, is significantly flawed, and we are disappointed by their decision to file a lawsuit aimed at blocking the completion of this transaction. We intend to vigorously challenge the Department’s overly broad interpretation of antitrust laws and will clearly demonstrate how this deal will deliver greater innovation and choice for customers, transform competition within the networking market, and reinforce the foundation of U.S. networking infrastructure. Reflecting the findings of other major antitrust regulators who have evaluated this deal, this acquisition unites two complementary networking solutions to create a competitor with the scale and capabilities necessary to effectively challenge global incumbents. The proposed merger will empower customers of all sizes with an advanced, secure network designed with AI and tailored for AI, enhancing both user and operator experiences while fostering increased competition in the market.

The facts in support of this transaction are clear:

There is extensive evidence that shows this acquisition is pro-competitive and the product area that is the focus of the DOJ’s suit – Wireless Local Area Network (WLAN) – is characterized by robust competition, with at least eight alternatives to HPE and Juniper.

• The DOJ’s claim that the WLAN market is composed of three primary players is substantially disconnected from market realities. As customers shift to AI and cloud-driven business strategies for secure, unified technology solutions to protect their data, barriers to entry have decreased and expansion and competition for WLAN has intensified. As such, WLAN is an extremely competitive market with a broad set of players, all of whom are fighting for business and winning bids in competitive RFP processes. The transaction will not impede the ability of other WLAN vendors to vigorously compete. 
• These allegations ignore well capitalized competitors in the U.S. – several of which hold market shares comparable to Juniper and one of which holds more than 50% market share.  These competitors generate business across all customer sizes and industry verticals, including large enterprise customers, who often solicit bids from five competitors for each opportunity.
• The transaction has been approved by antitrust regulators in 14 jurisdictions, including the European Commission and the U.K. CMA, each of which unconditionally cleared the transaction and acknowledged the pro-competitive benefits of this transaction. Other than Israel, the U.S. is the only jurisdiction to not have cleared this deal.
• Customers support this transaction, and the Department of Justice has not provided any evidence of customer complaints.

The combination creates unparalleled opportunity to better serve both HPE and Juniper customers and acts as an innovation catalyst for the industry.

• This transaction will benefit customers who gain a comprehensive AI-driven and cloud-native IT portfolio including the networking architecture necessary to manage and simplify their expanding and increasingly complex connectivity needs.
• Following the completion of the transaction, the combined company expects to accelerate innovation across the entire networking stack by investing in various R&D initiatives. This innovation will create more compelling solutions for customers and partners. 

HPE and Juniper’s complementary combination will create a compelling, U.S.- based alternative globally to incumbents, fortifying the American “core tech” sector that serves as the backbone of U.S. networking infrastructure.

• “Core tech” companies build and maintain the critical infrastructure that enables our entire modern economy and includes essential technologies like large-scale compute, semiconductors, and networking. These are essential to safeguarding national security.
• The networking space has become a critical arena of vulnerability, particularly as the industry looks toward 6G development and quantum-secure communications.
• The transaction will create a robust U.S.-based provider of core technology infrastructure that can help to protect against national security risks in the global technology market.

HPE and Juniper remain fully committed to the transaction and believe we will prevail in litigation and close the transaction so we can deliver the benefits of this acquisition to our customers.