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- HPE has reached a settlement with the DOJ to proceed with its $14 billion acquisition of Juniper Networks, agreeing to divest its Instant On business.
- The merger strengthens HPE’s position in AI-native networking, with Juniper’s Mist AIOps platform viewed as a core asset.
- U.S. regulators opted for targeted divestitures rather than blocking the deal, reflecting a growing trend in tech antitrust enforcement.
- While the DOJ raised concerns, regulators in Europe and 14 other markets had already approved the transaction.
Hewlett Packard Enterprise (HPE) is one step closer to completing its $14 billion acquisition of Juniper Networks after reaching a settlement with the U.S. Department of Justice (DOJ).
The agreement, which still awaits court approval, resolves the DOJ’s antitrust concerns and allows the tech giant to move forward with the merger that aims to bolster its capabilities in AI-driven networking and hybrid cloud solutions.
Divestiture Clears Antitrust Roadblock
Under the terms of the settlement, HPE will divest its global Instant On campus and branch business. This segment serves smaller-scale enterprise networking needs and its sale is designed to maintain fair competition in that space.
Additionally, HPE will limit post-acquisition access to Juniper’s Mist AIOps technology, a cutting-edge platform that uses artificial intelligence to enhance network operations and efficiency.
The companies say the merger is poised to meet the rising demand for intelligent, automated networking infrastructure in a world increasingly shaped by AI and data-intensive operations. HPE executives view Juniper’s technology as a strategic complement to their long-term push into AI-native networking, with Juniper’s Mist platform at the heart of that vision.
AI Ambitions Drive Strategic Fit
With artificial intelligence playing an increasingly central role in enterprise infrastructure, Juniper’s Mist AIOps technology was viewed as a critical piece of the deal. The platform includes features like predictive troubleshooting and automated diagnostics, which have seen strong uptake among large enterprises. These tools are designed to support what some in the industry call “self-driving” networks, aimed at reducing human intervention and cutting operational costs.
Earlier this year, HPE also inked a billion-dollar deal with Elon Musk’s X platform to supply AI-optimized servers. That move underscored HPE’s deepening commitment to AI workloads across its business. The Juniper acquisition, once finalized, is expected to further enhance its position in a rapidly shifting technological landscape where software intelligence is becoming as valuable as hardware.
DOJ Leans on Targeted Remedies, Not Full Blocks
The DOJ’s settlement represents a growing trend in how regulators handle major tech mergers. Instead of outright blocking deals, U.S. authorities are increasingly pushing for targeted divestitures to preserve competition while allowing companies to pursue innovation and scale. The resolution echoes the 2019 T-Mobile and Sprint merger, where similar remedies helped regulators approve the transaction by enabling a new competitor, Dish Network, to enter the market.
This kind of remedy-based settlement is becoming the go-to method for regulators who seek to prevent monopolistic dominance while recognizing the importance of technological advancement. Complete merger rejections remain rare in the U.S., with agencies often favoring deals that come with clear concessions.
Global Green Lights Highlight Regulatory Divide
While this deal now clears the path in the U.S., global regulators had largely already given their approval. Authorities in Europe and 14 other jurisdictions did not object to the merger, highlighting the different regulatory approaches to competition issues across markets.
Analysts say the DOJ’s tougher stance stems from concerns about the consolidation of enterprise networking in the U.S., where Cisco continues to dominate and Juniper represents one of its most significant challengers.
The final approval from the court is expected in the coming weeks. Once the transaction closes, it will mark one of the largest enterprise tech acquisitions of the year, positioning Hewlett Packard Enterprise as a stronger player in the high-stakes race to power the next generation of intelligent infrastructure.
