- Networking products company Juniper Networks, Inc. (NYSE: JNPR) announced it is going to acquire 128 Technology for $450 million in cash. These are the details.
Networking products company Juniper Networks, Inc. (NYSE: JNPR) announced it is going to acquire 128 Technology for $450 million in cash. Juniper also coordinated for 128 Technology to issue retention focused restricted stock units, which will be assumed by Juniper.
The acquisition is expected to close in Juniper Networks’ fiscal fourth quarter, subject to regulatory approvals and other customary closing conditions. And for the FY’21, the transaction is expected to be slightly accretive to revenue and gross margins, but dilutive to Non-GAAP EPS. In FY’22, the transaction is expected to be accretive to Non-GAAP EPS.
This deal will enhance Juniper’s AI-driven enterprise network portfolio by uniting 128 Technology’s Session Smart networking with Juniper’s campus and branch solutions driven by Mist AI. The combined portfolio is going to accelerate the industry evolution from first generation SD-WAN technology that focuses on optimizing connections from branch-to-cloud to a modern AI-driven network that optimizes user experiences from client-to-cloud. And in addition, the Juniper portfolio minimizes IT costs with exceptional client-level insight and self-driving network automation and reduces network overhead while delivering better user experiences for voice over IP, 5G and collaboration applications.
128 Technology will be integrated with Juniper’s AI-Driven Enterprise business unit — which includes wired and wireless access and SD-WAN, all driven by Mist AI. And the combined portfolio will give customers a unified platform for optimized user experiences from client-to-cloud.
KEY QUOTES:
“The acquisition of 128 Technology will enable Juniper to accelerate in a key area where we are seeing enormous success – the AI-driven enterprise. Both companies share a common vision of putting user experiences above all else and leveraging automation with proactive actions to simplify IT operations. With 128 Technology, we are adding a highly differentiated technology into our award-winning arsenal of campus and branch solutions driven by Mist AI to deliver even more customer value while further accelerating Juniper’s continued growth in the enterprise.”
— Rami Rahim, CEO of Juniper Networks
“128 Technology has brought to market a groundbreaking session-based routing solution that gives rise to experience-based networking. This allows our customers to realign their network with the requirements of a digital future that includes cloud, mobility and virtualization. The combination of our Session Smart Router with Juniper’s AI-driven enterprise portfolio, expansive channel and world-class support will dramatically accelerate our vision to transform networking and make a big impact on a very large, yet still highly under-served, WAN-Edge market.”
— Andy Ory, Co-Founder and CEO of 128 Technology
