You are currently viewing DOJ to Determine Who Acquires Juniper’s AI Ops for Mist in HPE Auction Transaction
Citation: Image is used for information purposes only. Picture Credit: https://www.crn.com/

DOJ to Determine Who Acquires Juniper’s AI Ops for Mist in HPE Auction Transaction

Prime Highlights

  • HPE is required to auction Juniper’s Mist AI Ops software under U.S. Department of Justice supervision.
  • The DOJ will select at most two successful bidders and observe the transfer of critical employees.

Key Facts

  • HPE has 180 days following its acquisition of Juniper to license the source code of Mist AI Ops on a competitive bidding basis.
  • Bidders have to bid more than $8 million, and only two will get full licenses as well as employee and transition assistance.
  • A maximum of 55 Juniper employees, ranging from engineers to salespeople, have to be offered inducements to work for the winning firms.

Key Background

The U.S. Department of Justice (DOJ) is taking a strong role in Hewlett Packard Enterprise’s acquisition of Juniper Networks, that is, relating to Juniper’s AI operations platform, Mist AI Ops. To mitigate possible antitrust issues and ensure market competition, the DOJ has placed stringent regulatory terms on the way this key asset will be treated.

In the deal, HPE has an obligation to auction the source code of Mist AI Ops. This auction must occur within 180 days of closing the Juniper deal. However, not just any bidder can win—only those pre-approved by the DOJ will be considered eligible. Among qualified bidders, only up to two can win full licenses. Where there are more than two qualifying bids, a second auction round may take place, but licenses granted in that round won’t involve access to employees or transition assistance.

One of the key areas of the DOJ’s requirements is providing for an uninterrupted transition and ensuring business continuity. HPE needs to incentivize the transition of as many as 55 Juniper employees to the winning bidders—30 engineers with in-depth domain knowledge of Mist AI Ops, and 25 sales professionals with domain knowledge of the customer and partner ecosystem. This continuity of workforce is essential to safeguarding the value of the platform after the auction.

HPE also has the duty of delivering transition services, such as knowledge transfer, continuous software maintenance, and support in terms of marketing and distribution channels. They serve to ensure that the new licensees are in a position to continue product development and customer support uninterrupted.

In order to avoid any competitive imbalance, the DOJ will oversee the process itself closely, beginning within 20 days of the acquisition and repeating with monthly reports until the divestiture is done. The DOJ also restricts HPE from recruiting more Juniper employees above the sanctioned 55, in order not to accord undue competitive advantage.

Ultimately, this structure is meant to help ensure that Juniper’s Mist AI Ops is a healthy competitor in the market even after passing into new hands, while guarding consumers, innovation, and the integrity of the tech industry.