(Bloomberg) — Hewlett Packard Enterprise Co. agreed to buy Juniper Networks Inc. for $14 billion in a move that will expand its presence in networking but raised skepticism from Wall Street.
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HPE, a maker of data center hardware, will pay $40 a share in cash for Juniper, the companies said Tuesday in a statement. That price represents more than half of HPE’s $21 billion market value and a 32% premium over Juniper’s closing price of $30.22 on Monday before talks of a deal emerged.
Networking, technology that directs the flow of information between devices and across the internet, will be the new core of HPE, Chief Executive Officer Antonio Neri said in an interview after the agreement was announced. That business line will double in size once the deal is closed, the company said.
HPE said it will finance the purchase with term loans that over time will be…
