Hewlett Packard Enterprise (HPE) CEO Antonio Neri remains optimistic about finalizing the $14 billion acquisition of Juniper Networks (JNPR) by early 2025, despite regulatory scrutiny.
“We have no pause about the deal,” Neri told Yahoo Finance, emphasizing that the acquisition would benefit customers and bolster national security. If approved, the deal would double HPE’s networking business, making it one of the largest acquisitions in the company’s history since the $3 billion Aruba Networks purchase in 2015.
Regulatory Challenges
Concerns over the acquisition’s impact on competition have surfaced. HPE has reportedly met with Justice Department officials to address antitrust worries, as the Biden administration intensifies scrutiny of large mergers. Despite these challenges, Neri expressed confidence in gaining regulatory approval.
Financial Performance
HPE’s fiscal Q4 earnings met Wall Street expectations, supported by strong demand for AI infrastructure. Two of its three main business segments achieved operating margin growth, and the company provided guidance aligned with analyst forecasts.
Analyst Outlook
Citi analyst Asiya Merchant upgraded HPE’s stock to “Buy,” citing optimism around enterprise AI demand, infrastructure spending, and potential earnings growth from the Juniper acquisition. Merchant set a price target of $26 per share.
HPE shares surged 9% on Friday, closing at $23.75, and have gained 40% year-to-date, though they trail rival Dell’s 63% increase.