Shares of Juniper Networks Inc. soared Tuesday following a report that Hewlett Packard Enterprise Co. is in advanced talks to acquire the network services company for approximately $13 billion and thrust the venerable technology pioneer into the artificial-intelligence age.
A deal could be struck and announced as soon as this week, according to a Wall Street Journal report late Monday, citing people familiar with the matter.
Juniper’s stock
JNPR,
shot up 23.8% in premarket trading Tuesday, which puts it on track to open at the highest prices seen since March 2022. The stock was also headed for the biggest one-day gain since it ran up 30.5% on Jan. 16, 2004.
HPE’s stock
HPE,
tumbled 10.6%, after closing Monday at a four-month high.
At Monday’s close, Juniper’s market capitalization was $9.64 billion, while HPE’s was $23.04 billion.
California-based Juniper makes communications-networking products, and has an AI business known as Mist AI. Texas-based HPE is a cloud services provider.
Juniper’s stock has lost 5.1% over the past 12 months through Monday, while HPE shares have gained 4.5% and the S&P 500 index
SPX
has advanced 22.4%.
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