Hewlett Packard Enterprise And Juniper Networks Oppose DOJ's Lawsuit To Block Acquisition

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(RTTNews) - Hewlett Packard Enterprise Company (HPE) and Juniper Networks, Inc. Thursday addressed the U.S. Department of Justice's complaint aiming to block the completion of HPE's proposed acquisition of Juniper.

The facts supporting this transaction are as follows:

There is strong evidence demonstrating that this acquisition is pro-competitive, and the product area targeted by the DOJ's lawsuit - Wireless Local Area Network (WLAN) - is highly competitive, with at least eight alternatives to HPE and Juniper.

The DOJ's assertion that the WLAN market is dominated by three main players is out of touch with market realities. As businesses increasingly turn to AI and cloud-based strategies for secure, unified technology solutions to protect data, entry barriers have lowered, and competition in the WLAN sector has intensified. WLAN is a highly competitive market with numerous players vying for business and winning bids through competitive RFP processes. This transaction will not hinder the ability of other WLAN vendors to compete effectively.

These claims overlook well-funded U.S. competitors, several of which hold market shares comparable to Juniper, with one holding over 50% market share. These competitors serve a wide range of customers across all sizes and industries, including large enterprises, which typically seek 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, both of which unconditionally cleared the deal, recognizing its pro-competitive benefits. Aside from Israel, the U.S. is the only jurisdiction that has not yet cleared the deal. Customers support the transaction, and the DOJ has not presented any evidence of customer complaints.

The merger presents a unique opportunity to enhance service for both HPE and Juniper customers while driving innovation in the industry.

Customers will benefit from a comprehensive, AI-driven, cloud-native IT portfolio, including the networking architecture needed to manage and simplify their growing and complex connectivity demands.

Once the transaction is finalized, the combined company plans to accelerate innovation across the entire networking stack by investing in various R&D efforts, leading to more compelling solutions for customers and partners.

The complementary combination of HPE and Juniper will create a strong U.S.-based alternative on the global stage, strengthening the American "core tech" sector that underpins U.S. networking infrastructure.

"Core tech" companies are responsible for building and maintaining the critical infrastructure that supports the modern economy, including vital technologies like large-scale computing, semiconductors, and networking—key elements for safeguarding national security.

As the industry advances toward 6G development and quantum-secure communications, the networking sector has become increasingly vulnerable. This transaction will establish a robust U.S.-based provider of core technology infrastructure, enhancing protection against national security risks in the global tech market.

HPE and Juniper are fully committed to the transaction and confident that we will succeed in the litigation, allowing us to complete the deal and deliver its benefits to our customers.

Currently, HPE is trading at $21.28 or 1.73% lower on the New York Stock Exchange.