Networking-products giant Juniper Networks (JNPR) - Get Juniper Networks, Inc. Report on Monday said it definitively agreed to buy 128 Technology, a provider of software-based routing solutions, for $450 million cash.
Juniper Networks also will assume 128 Technology's restricted-stock units designed to retain staff.
In 2021, Juniper Networks said, 128 Technology should add slightly to revenue and gross margins and dilute adjusted earnings per share. In 2022 the transaction should add to adjusted earnings.
This deal will strengthen the Sunnyvale, Calif., company's artificial-intelligence enterprise-network portfolio.
"The acquisition of 128 Technology will enable Juniper to accelerate in a key area where we are seeing enormous success – the AI-driven enterprise,” Juniper Chief Executive Rami Rahim said in a statement.
"With 128 Technology, we are adding a highly differentiated technology into our campus and branch solutions driven by Mist AI to deliver even more customer value while further accelerating Juniper’s continued growth in the enterprise.”
The acquisition is expected to close in the fourth quarter, subject to conditions including regulatory clearances, the company said.
The Burlington, Mass.-based 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 from client to cloud.
"This allows our customers to realign their network with the requirements of a digital future that includes cloud, mobility and virtualization,” Andy Ory, co-founder and CEO of 128 Technology, said in the statement.
The deal is the second Juniper has unveiled in three weeks. Late last month it said it agreed to acquire Netrounds, the Lulea, Sweden, provider of a programmable, software-based test and service assurance platform for fixed and mobile networks. Terms weren't disclosed.
Shares of Juniper Networks at last check were down 0.5% to $22.33.