Combined AI-Driven Enterprise Portfolio Will Optimize User Experiences from Client-to-Cloud with Proactive AIOps, Insights and Unique Self-Driving Network™ Actions
Juniper Networks (NYSE: JNPR), a leader in secure, AI-driven networks, announced that the company has entered into a definitive agreement to acquire 128 Technology. The deal will enhance Juniper’s AI-driven enterprise network portfolio by uniting 128 Technology’s Session Smart™ networking with Juniper’s best-in-class campus and branch solutions driven by Mist AI. The combined portfolio will 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. 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.
Under the terms of the agreement, Juniper Networks will acquire 128 Technology for $450 million, subject to customary adjustments, payable in cash and the assumption of outstanding equity awards. Juniper has 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. In 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.
“The acquisition of 128 Technology will enable Juniper to accelerate in a key area where we are seeing enormous success – the AI-driven enterprise,” said Rami Rahim, CEO of Juniper Networks. “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.”