February 20, 2024

Antonio Neri

Anjali Sundaram | CNBC

Juniper Networks shares soared greater than 20% in prolonged buying and selling on Monday after the Wall Road Journal reported that Hewlett Packard Enterprise is in “superior talks” to amass the corporate for round $13 billion.

A deal might be introduced as quickly as this week, the Journal stated, citing individuals aware of the matter. Juniper and HPE representatives didn’t instantly reply to CNBC’s requests for remark.

Juniper, which has lengthy competed with Cisco within the networking gear market, underperformed the tech business final yr. The corporate’s inventory worth fell about 8% in 2023, whereas the Nasdaq Composite gained 43%. HPE rose practically 10%.

Juniper’s income shrank 1% within the third quarter from a yr earlier to $1.4 billion.

A deal might bolster HPE’s efforts to problem Cisco, the main supplier of networking switches. Within the newest quarter, HPE reported 2% income progress from a yr earlier. Its fastest-growing section within the quarter was Clever Edge, which incorporates knowledge middle switching.

HPE held $4 billion in money and equivalents on the finish of October.

HPE was fashioned in 2015, when Hewlett-Packard cut up into two corporations. HP, the opposite spinout, makes PCs and printers.

For the reason that cut up, HPE has largely prevented making splashy acquisitions. Its greatest deal was the $1.5 billion buy of supercomputer maker Cray in 2019.

In Could, HPE agreed to promote its stake within the Chinese language three way partnership H3C for $3.5 billion. An government stated on the firm’s analyst assembly in October that HPE doesn’t plan to carry extra money over the long run.

Learn the complete Wall Road Journal report right here.

WATCH: HPE CEO: AI curiosity is far larger than I ever anticipated, and we see an unlimited pipeline