Hewlett Packard Enterprise Co. (HPE) has received approval to proceed with its $14 billion acquisition of Juniper Networks Inc. after settling a lawsuit filed by the U. S. Department of Justice (DOJ). The DOJ initially tried to block the deal in January, arguing it would reduce competition in the U. S. wireless networking market, where HPE and Juniper rank as the second and third largest providers behind Cisco Systems Inc. The recent agreement between the DOJ and the companies requires the combined entity to license Juniper’s Mist AI Ops software source code and divest HPE’s Instant On wireless networking business unit. This compromise, submitted to the U. S. District Court for the Northern District of California on June 27, awaits a judge’s approval, which is expected to be a formality just ahead of a scheduled trial on July 9. A key element of the settlement is an auction for Juniper’s Mist AI Ops source code, considered one of the strategic assets HPE aimed to acquire.

Competitors will have the opportunity to bid for access to this technology. The DOJ stated the license will be perpetual, non-exclusive, and may include transitional support and personnel transfers to ensure continued market competition. HPE described this as “facilitating limited access” to the Mist AI Ops technology. Further, HPE must sell its Instant On campus and brand wireless local-area network business—including all software assets, intellectual property, R&D teams, and customer relationships—to a DOJ-approved buyer within 180 days of closing the acquisition. Instant On products primarily serve small- and medium-sized businesses with cloud-based wired and wireless networking solutions designed for easy IT deployment. HPE CEO Antonio Neri expressed satisfaction with the settlement, emphasizing that it maintains the benefits of the original deal for customers and shareholders while safeguarding market competitiveness. Neri highlighted that the merger will provide customers with a “modern network architecture alternative” capable of supporting AI workloads, combining HPE Aruba Networking and Juniper to deliver a comprehensive portfolio of secure, AI-native networking solutions, and accelerating growth in AI data center, service center, and cloud markets. Juniper CEO Rami Rahim echoed this optimism, calling the agreement a significant milestone that enables customers to access “a complete portfolio of modern, secure networking solutions” essential for hybrid cloud and AI infrastructure. HPE has consistently framed the acquisition as a strategy to strengthen its position in AI networking. At HPE Discover in Barcelona last November, Neri underscored the importance of a modern networking foundation for AI, equating it with the critical role of silicon that powers large language models. He described their efforts as elevating networking capabilities to disrupt the industry and significantly enhance HPE’s AI and networking expertise. (Photo: SiliconANGLE)