DOJ approves HPE’s $14B acquisition of Juniper Networks

Hewlett Packard Enterprise (HPE) has recently resolved an antitrust lawsuit filed by the U.S. Department of Justice (DOJ) to challenge its $14 billion acquisition of Juniper Networks, marking a significant step toward the completion of the largest networking deal of the year. As part of this settlement, HPE is required to divest its Instant On wireless networking business and license the source code for Juniper’s Mist AIOps software.

This settlement, subject to judicial approval, is set to nullify the trial previously scheduled for July 9. The lawsuit, initiated in February, argued that the merger of HPE and Juniper would limit competition and result in a market dominated by only two companies: HPE and Cisco Systems, controlling over 70% of the U.S. networking equipment market. HPE’s Intelligent Edge segment, which includes Instant On, generated $1.2 billion in revenue for the first quarter of 2025 based on the company’s Q1 earnings report.

Instant On, catering to small and medium-sized businesses and public organizations, competes with offerings from Cisco Meraki Go, Ubiquiti, and Cambium Networks. HPE is mandated to sell its Instant On business, including associated assets, intellectual property, and R&D personnel to an approved buyer by the DOJ within 180 days. Additionally, an auction must be conducted for licensing Juniper’s Mist AIOps for its WLAN products.

The DOJ views this settlement as a strategic move that enables the merger to proceed while ensuring that competitors have access to critical software assets.

Despite the conditions outlined in the settlement, industry analysts view this development as a positive outcome for HPE. They believe that the merger presents a significant opportunity for HPE to enhance its competitive position in the networking market, enabling the company to offer a robust portfolio that can challenge established players like Cisco and create a formidable presence in the industry.

While the concessions required by the DOJ may pose some challenges for HPE in the short term, analysts and industry experts remain optimistic about the long-term benefits of the merger. The licensing of Mist AIOps software could potentially provide opportunities for smaller networking companies to enhance their offerings and compete more effectively in the market.

Overall, the settlement between HPE and the DOJ represents a crucial step toward finalizing the merger with Juniper Networks. Despite the initial regulatory hurdles and conditions set forth by the DOJ, both companies appear committed to moving forward with the deal and leveraging their combined strengths to drive innovation and growth in the networking industry.