Hewlett Packard Enterprise and Juniper Networks Strongly Oppose Department of Justice’s Decision to File Suit to Block Acquisition
HPE and Juniper Networks strongly oppose the U.S. Department of Justice's lawsuit attempting to block their proposed acquisition. The companies argue that DOJ's analysis is flawed, particularly regarding the Wireless Local Area Network (WLAN) market competition. They emphasize that the WLAN market has at least eight alternatives to HPE and Juniper, contrary to DOJ's claim of only three primary players.
The transaction has received approval from antitrust regulators in 14 jurisdictions, including the European Commission and U.K. CMA. Only the U.S. and Israel haven't cleared the deal. The companies argue the merger would enhance competition, drive innovation in AI-driven networking solutions, and strengthen U.S. networking infrastructure.
The companies plan to vigorously defend the transaction in court, highlighting its potential to create a more competitive networking player with improved scope and scale to compete with global incumbents.
HPE e Juniper Networks si oppongono fermamente alla causa del Dipartimento di Giustizia degli Stati Uniti, che cerca di bloccare la loro proposta di acquisizione. Le aziende sostengono che l'analisi del DOJ sia errata, in particolare per quanto riguarda la concorrenza nel mercato delle reti locali senza fili (WLAN). Sottolineano che il mercato WLAN dispone di almeno otto alternative a HPE e Juniper, in contrasto con l'affermazione del DOJ che indicava solo tre attori principali.
La transazione ha ricevuto l'approvazione da parte delle autorità antitrust in 14 giurisdizioni, tra cui la Commissione Europea e la CMA del Regno Unito. Solo gli Stati Uniti e Israele non hanno ancora approvato l'accordo. Le aziende affermano che la fusione migliorerebbe la concorrenza, stimolerebbe l'innovazione nelle soluzioni di rete basate sull'IA e rafforzerebbe l'infrastruttura di networking degli Stati Uniti.
Le aziende prevedono di difendere con vigore la transazione in tribunale, evidenziando il suo potenziale per creare un attore nel settore del networking più competitivo, con una maggiore portata e scala per concorrere con i leader globali.
HPE y Juniper Networks se oponen firmemente a la demanda del Departamento de Justicia de EE. UU. que intenta bloquear su propuesta de adquisición. Las empresas argumentan que el análisis del DOJ es defectuoso, particularmente en lo que respecta a la competencia en el mercado de Redes de Área Local Inhalámbricas (WLAN). Enfatizan que el mercado WLAN tiene al menos ocho alternativas a HPE y Juniper, en contraste con la afirmación del DOJ de que solo hay tres actores principales.
La transacción ha recibido la aprobación de los reguladores antimonopolio en 14 jurisdicciones, incluida la Comisión Europea y la CMA del Reino Unido. Solo EE. UU. e Israel no han aprobado el acuerdo. Las empresas argumentan que la fusión mejoraría la competencia, impulsaría la innovación en soluciones de red impulsadas por IA y fortalecería la infraestructura de redes de EE. UU.
Las empresas planean defender enérgicamente la transacción en los tribunales, destacando su potencial para crear un jugador de redes más competitivo con una mejor amplitud y escala para competir con los incumbentes globales.
HPE와 Juniper Networks는 미국 법무부의 인수 제안 차단을 시도하는 고소에 강력히 반대합니다. 두 회사는 법무부의 분석이 결함이 있다고 주장하며, 특히 무선 로컬 영역 네트워크(WLAN) 시장 경쟁과 관련하여 말입니다. 그들은 WLAN 시장에 HPE와 Juniper 외에 최소 8가지 대안이 있다고 강조하며, 법무부가 주장하는 3개의 주요 플레이어와는 반대의 입장을 취하고 있습니다.
이번 거래는 유럽연합 집행위원회와 영국 CMA를 포함한 14개 관할권의 반독점 규제 기관의 승인을 받았습니다. 미국과 이스라엘만이 거래를 승인하지 않았습니다. 두 회사는 합병이 경쟁을 강화하고 AI 기반 네트워킹 솔루션의 혁신을 촉진하며, 미국의 네트워킹 인프라를 강화할 것이라고 주장합니다.
두 회사는 법원에서 거래를 강력히 방어할 계획이며, 글로벌 기업들과 경쟁할 수 있는 더 경쟁력 있는 네트워킹 업체를 만드는 잠재력을 강조하고 있습니다.
HPE et Juniper Networks s'opposent fermement à la plainte du Département de la Justice des États-Unis visant à bloquer leur projet d'acquisition. Les entreprises soutiennent que l'analyse du DOJ est erronée, notamment en ce qui concerne la concurrence sur le marché des réseaux locaux sans fil (WLAN). Elles soulignent que le marché des WLAN dispose d'au moins huit alternatives à HPE et Juniper, contrairement à l'affirmation du DOJ selon laquelle il n'y aurait que trois acteurs principaux.
La transaction a été approuvée par les régulateurs antitrust dans 14 juridictions, y compris la Commission européenne et la CMA du Royaume-Uni. Seuls les États-Unis et Israël n'ont pas validé l'accord. Les entreprises affirment que la fusion améliorerait la concurrence, stimulerait l'innovation dans les solutions de réseau alimentées par l'IA et renforcerait les infrastructures de réseau américaines.
Les entreprises prévoient de défendre vigoureusement la transaction devant les tribunaux, soulignant son potentiel à créer un acteur du réseautage plus compétitif avec une portée et une échelle améliorées pour rivaliser avec les acteurs mondiaux.
HPE und Juniper Networks lehnen die Klage des US-Justizministeriums, die den Block ihrer angestrebten Übernahme beabsichtigt, entschieden ab. Die Unternehmen argumentieren, dass die Analyse des DOJ fehlerhaft sei, insbesondere in Bezug auf den Wettbewerb im Markt für Wireless Local Area Networks (WLAN). Sie betonen, dass der WLAN-Markt mindestens acht Alternativen zu HPE und Juniper hat, im Gegensatz zu der Behauptung des DOJ, dass es nur drei Hauptakteure gebe.
Die Transaktion wurde von Wettbewerbsbehörden in 14 Jurisdiktionen genehmigt, einschließlich der Europäischen Kommission und der CMA im Vereinigten Königreich. Nur die USA und Israel haben den Deal noch nicht genehmigt. Die Unternehmen argumentieren, dass die Fusion den Wettbewerb verbessern, Innovationen in KI-gesteuerten Netzwerklösungen vorantreiben und die Netzwerkinfrastruktur in den USA stärken würde.
Die Unternehmen planen, die Transaktion energisch vor Gericht zu verteidigen und dabei ihr Potenzial hervorzuheben, einen wettbewerbsfähigeren Networking-Akteur zu schaffen, der über verbesserte Reichweite und Skalierbarkeit verfügt, um mit globalen Marktführern konkurrieren zu können.
- Transaction approved by 14 antitrust regulators globally
- Merger would create stronger competition against dominant market players
- Combined entity would enhance AI-driven networking solutions portfolio
- Strengthens U.S.-based technology infrastructure position
- DOJ lawsuit could delay or prevent deal completion
- Legal defense costs may impact financial performance
- Regulatory uncertainty in U.S. and Israel markets
Insights
The DOJ's move to block HPE's
Antitrust Analysis and Market Definition: The DOJ's focus on WLAN competition appears notably narrow, especially considering the broader networking ecosystem. The companies' argument about eight viable competitors and the presence of a dominant player with
Global Regulatory Divergence: The stark contrast between U.S. and international regulatory responses is particularly telling. The unconditional approvals from 14 jurisdictions, including sophisticated regulators like the EU Commission and UK CMA, suggest potential overreach in the DOJ's position. This regulatory divergence could have broader implications for future cross-border tech acquisitions.
National Security Implications: The transaction's national security dimension adds another layer of complexity. In an era of increasing tech nationalism, blocking a merger that could strengthen U.S. 'core tech' capabilities, particularly in quantum-secure communications and 6G development, might have unintended consequences for America's competitive position against foreign tech giants.
Litigation Strategy and Precedent: The companies' commitment to litigation suggests a protracted legal battle that could establish important precedents for future tech infrastructure consolidation. The outcome could significantly influence how antitrust authorities evaluate market competition in rapidly evolving technology sectors, particularly where AI and cloud technologies are reshaping traditional market boundaries.
Proposed Acquisition Drives Innovation for Customer Solutions, Enhances an Already Competitive Market, and Fortifies
Companies Plan to Vigorously Defend the Transaction in Court
“We believe the Department of Justice’s analysis of this acquisition is fundamentally flawed and we are disappointed in its decision to file a suit attempting to prohibit the closing of the transaction. We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market by enhancing competition, and strengthen the backbone of
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 than50% 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 thanIsrael , theU.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,
- “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.
About Hewlett Packard Enterprise
Hewlett Packard Enterprise (NYSE: HPE) is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze, and act upon data seamlessly. The company innovates across networking, hybrid cloud, and AI to help customers develop new business models, engage in new ways, and increase operational performance. For more information, visit: www.hpe.com.
About Juniper Networks
Juniper is dedicated to dramatically simplifying network operations and driving superior experiences for end users. Our solutions deliver industry-leading insight, automation, security and AI to drive real business results. We believe that powering connections will bring us closer together while empowering us all to solve the world’s greatest challenges of well-being, sustainability and equality. Additional information can be found at https://www.juniper.net/ or connect with Juniper on X (formerly Twitter), LinkedIn and Facebook.
Forward-looking Statements
This document contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HPE and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, any statements regarding the outcome of the litigation; any statements regarding the ability of HPE to integrate and implement its plans, forecasts and other expectations with respect to Juniper’s business after the completion of the transaction, and to realize additional opportunities for growth and innovation; any statements regarding the expected benefits of the transaction contemplated by this document, including enhanced opportunities for growth, the delivery of customer benefits and the realization and timing of economic benefits; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the ability of HPE and Juniper to prevail in the litigation prior to the termination of the merger agreement or to prevail at all; the possibility that the expected benefits of the consummated transaction may not materialize as expected; that the parties are unable to successfully implement integration strategies; potential adverse business uncertainty resulting from the completion of the transaction; and other risks that are described in HPE’s and Juniper’s SEC reports, including but not limited to the risks described in HPE’s Annual Report on Form 10-K for its fiscal year ended October 31, 2024 and Juniper’s Quarterly Report on Form 10-Q for its fiscal quarter ended September 30, 2024, both filed with the Securities and Exchange Commission. HPE and Juniper assume no obligation and do not intend to update these forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130866726/en/
Media Contacts:
HPE
Laura
laura.keller@hpe.com
Juniper
Pelin Murphy
pelin@juniper.net
Investor Contacts:
HPE
Paul Glaser
investor.relations@hpe.com
Juniper
Jess Lubert
jlubert@juniper.net
Source: Hewlett Packard Enterprise
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