Juniper Networks' stock rockets on report HPE buyout is imminent

By Jon Swartz and Tomi Kilgore

Hewlett Packard Enterprise's looks to better position itself in the AI arena, WSJ report says

Shares of Juniper Networks Inc. soared Tuesday following a report that Hewlett Packard Enterprise Co. is in advanced talks to acquire the network services company for approximately $13 billion and thrust the venerable technology pioneer into the artificial-intelligence age.

A deal could be struck and announced as soon as this week, according to a Wall Street Journal report late Monday, citing people familiar with the matter.

Juniper's stock (JNPR) shot up 23.8% in premarket trading Tuesday, which puts it on track to open at the highest prices seen since March 2022. The stock was also headed for the biggest one-day gain since it ran up 30.5% on Jan. 16, 2004.

HPE's stock (HPE) tumbled 10.6%, after closing Monday at a four-month high.

At Monday's close, Juniper's market capitalization was $9.64 billion, while HPE's was $23.04 billion.

California-based Juniper makes communications-networking products, and has an AI business known as Mist AI. Texas-based HPE is a cloud services provider.

Juniper's stock has lost 5.1% over the past 12 months through Monday, while HPE shares have gained 4.5% and the S&P 500 index SPX has advanced 22.4%.

-Jon Swartz -Tomi Kilgore

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01-09-24 0710ET

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