首页 News 正文

HP's $14 billion acquisition case is somewhat pending, UK launches antitrust investigation

终究未留
1238 0 0

The UK antitrust regulatory agency, the Competition and Market Authority (CMA), announced on June 19th local time that it has launched an investigation into the acquisition of Juniper Networks (JNPR. US) by HP Enterprise (HPE.US, also known as Huihe Technology).
On January 9th, more than five months ago, HP announced that it would acquire network equipment manufacturer JNPR.US for $14 billion in full cash to strengthen the company's artificial intelligence products and cloud computing development. The payment consideration proposed by HP to shareholders of Zhanbo Network is $40 per share (a 32.4% premium from the previous trading day).
This is the largest acquisition initiated by HP since 2008; It is also the largest acquisition in the global network equipment field since Nokia acquired Alcatel Lucent for 15.6 billion euros in 2016.
On November 1, 2015, HP officially completed the split and established HPE, which mainly sells server storage, networking, and other data center equipment, and HPQ, which mainly produces PCs and printers, respectively.
HPE's revenue in 2023 was $29.1 billion, with a net profit of $2.025 billion. The network department is the largest contributor to the company's pre tax profit, based on the $3 billion acquisition of Aruba Networks by HP in 2015. Aruba's current quarterly revenue exceeds $1 billion.
The target company that HPE plans to acquire this time, Zhanbo Network, was established in 1996 and has been deeply involved in the network equipment market for many years. It was once one of Cisco's competitors. In recent years, the cloud service sector has shown outstanding performance. Zhanbo Network's total net revenue in 2023 was 5.565 billion US dollars (5.301 billion US dollars in 2022), with a net profit of 310 million US dollars.
HPE CEO Antonio Neri stated during the quarterly earnings conference call in March this year that after acquiring Juniper Networks for $14 billion, HPE will enhance its comprehensive strategy from the edge to the cloud, accelerate the company's entire product portfolio through AI innovation, and "cover $180 billion in market opportunities through our merged IP (intellectual property)."
This transaction was originally planned to be completed by the end of this year or early 2025, and in addition to requiring approval from each shareholder, it also cannot bypass investigations by regulatory agencies in the United States, the United Kingdom, and the European Union.
The UK Competition and Market Authority is the first to initiate an antitrust investigation based on whether it will significantly reduce competition in any one or more goods or services markets in the UK. The investigation is divided into three stages. From June 19 to July 3, 2024, the first stage of the merged investigation will be initiated, and a decision will be made before August 14 on whether to advance the investigation to a more in-depth "second stage".
The acquisition of HP Enterprise and Zhanbo Network has cast a shadow over it.
There are similar precedents in the industry. On September 15, 2022, Adobe announced that it would acquire collaborative design software company Figma for approximately $20 billion, half in cash and the other half in Adobe stock exchange. After experiencing antitrust investigations by the European Union and the UK, Adobe was forced to abandon the transaction in December 2023. For this, Adobe also needs to pay Figma a breakup fee of $1 billion.
But this acquisition by HP Enterprise is not without the possibility of success. On September 21st last year, Cisco announced the acquisition of cybersecurity software company Splunk for $157 per share in cash, with a total transaction amount of approximately $28 billion. The acquisition case was completed in March this year. And HP's acquisition of Zhanbo Network is also an effort to compete with network equipment manufacturers such as Cisco.
On June 19th Eastern Time, HP Enterprise closed at $21.84, with a market value of $28.385 billion; Zhanbo Network closed at $35.54, with a market value of $11.55 billion.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
您需要登录后才可以回帖 登录 | 立即注册

本版积分规则

  •   知名做空机构香橼研究(Citron Research)周四(11月21日)在社交媒体平台X上发布消息称,该公司已决定做空“比特币大户”微策略(Microstrategy)这家公司,并认为该公司已经将自己变身成为一家比特币投资基金 ...
    caffycat
    昨天 11:18
    支持
    反对
    回复
    收藏
  •   每经AI快讯,11月20日,文远知行宣布旗下自动驾驶环卫车S6与无人扫路机S1分别在新加坡滨海湾海岸大道与滨海艺术中心正式投入运营。据介绍,这是新加坡首个商业化运营的自动驾驶环卫项目。 ...
    star8699
    3 天前
    支持
    反对
    回复
    收藏
  •   上证报中国证券网讯(记者王子霖)11月20日,斗鱼发布2024年第三季度未经审计的财务报告。本季度斗鱼依托丰富的游戏内容生态,充分发挥主播资源和新业务潜力,持续为用户提供高质量的直播内容及游戏服务,进一步 ...
    goodfriendboy
    3 天前
    支持
    反对
    回复
    收藏
  •   人民网北京11月22日电 (记者栗翘楚、任妍)2024广州车展,在新能源汽车占据“半壁江山”的同时,正加速向智能网联新能源汽车全面过渡,随着“端到端”成为新宠,智能驾驶解决方案成为本届广州车展各大车企竞 ...
    3233340
    昨天 17:06
    支持
    反对
    回复
    收藏
终究未留 新手上路
  • 粉丝

    0

  • 关注

    0

  • 主题

    4