Juniper Networks to acquire 128 Technology

SUNNYVALE, Calif. -- 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.

128 Technology’s unique session-smart networking enables enterprise customers and service providers to create a user experience-centric fabric for WAN connectivity that’s simple, efficient, agile and secure. By making intelligent decisions based on real-time user sessions and agile business policies instead of static network policies configured on a per tunnel basis, the 128 Technology solution delivers industry-best performance and scale at a lower operational cost than traditional WAN router and SD-WAN solutions.

Future integration of 128 Technology with Juniper’s WAN Assurance software, the branch SRX portfolio and Marvis™ Virtual Network Assistant, all driven by Mist AI, will enable customers to get even more advanced AI-driven WAN capabilities – from initial configuration to ongoing AIOps, including customizable service levels (down to the individual user), proactive anomaly detection, fault isolation with recommended corrective actions, self-driving network operations and AI-driven support. When coupled with Juniper Connected Security, customers also get zero-trust access, next generation firewall, web/content filtering, real-time threat intelligence and advanced threat protection for advanced protection when and where they need it most.

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. The combined portfolio will give customers a unified platform for optimized user experiences from client-to-cloud

“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.”

“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,” said Andy Ory, Co-Founder and CEO of 128 Technology. “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.”

Juniper Networks and 128 Technology will host a conference call webcast today, October 19, 2020, at 7:00 am PT, to be broadcast live over the internet at http://investor.juniper.net. To participate via telephone in the US, the toll-free number is 1-877-407-8033. Outside the US, dial +1-201-689-8033. The webcast replay will be archived on the Juniper Networks website.