Juniper to Buy Mist for $405M
SUNNYVALE, Calif. -- Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, announced that the company has entered into a definitive agreement to acquire Mist Systems, a pioneer in cloud-managed wireless networks powered by Artificial Intelligence (AI). The deal will enhance Juniper’s enterprise networking portfolio by combining Mist’s next-generation Wireless LAN (WLAN) platform with Juniper’s best-in-class wired LAN, SD-WAN and security solutions to deliver unsurpassed end-to-end user and IT experiences.
Under the terms of the agreement, Juniper Networks will acquire Mist for aggregate consideration of $405 million, subject to adjustment, payable in cash and the assumption of outstanding equity awards. The proposed acquisition is expected to close in Juniper Networks’ fiscal second quarter, subject to regulatory approvals and customary closing conditions. It is expected to be slightly dilutive to FY’19 Non-GAAP EPS and slightly accretive to Non-GAAP EPS in FY’20.
Mist has built the world’s first AI-driven wireless platform, which makes Wi-Fi more predictable, reliable and measurable. Mist has also developed the networking industry’s only AI-driven virtual assistant, Marvis, to simplify wireless troubleshooting and provide unprecedented insight into client and network behavior. In addition, Mist uses patented virtual Bluetooth® LE technology in conjunction with Wi-Fi and IoT to deliver scalable and cost-effective location-based wireless services to customers, such as indoor wayfinding, proximity notifications, traffic analytics and asset tracking. All operations are managed via Mist’s modern cloud microservices architecture for maximum scalability, agility and performance. As a result, Mist is quickly becoming the WLAN standard for enterprise customers across numerous industries, including two of the Fortune 10, seven of the top 40 retailers, the flagship facility at the US’s largest healthcare system, one of the top mobile carriers and one of the world’s largest airlines.
The acquisition will expand Juniper’s presence in the rapidly growing cloud-managed segment of the wireless networking market. Further, the deal enables Juniper to extend cloud-based management and end-to-end AI-driven visibility (“AI for IT”) across the end-to-end enterprise network (from access to the WAN) to offer an industry-leading, software-defined and highly differentiated solution for simplifying operations, improving user experience and lowering total cost of ownership (TCO).
“Mist Systems is a great fit for Juniper and for our enterprise customers,” explained Rami Rahim, CEO of Juniper Networks. “Juniper and Mist share a common strategic goal. We believe in the Software-Defined Enterprise and Mist’s focus on bringing AI to IT is consistent with our core belief that we need to simplify operations and improve customer experience while lowering costs. With Mist, we are adding a market leading solution to complement our portfolio, drive the cloud transition within the enterprise and accelerate our enterprise growth.”
“Mist Systems has developed a unique blend of wireless, AI and cloud expertise that has enabled us to stand out from the competition and bring much needed innovation to the wireless space,” said Sujai Hajela, CEO of Mist Systems. “By combining these proficiencies with Juniper’s expansive channel reach, world-class support and best-in-class networking and security products, we believe we will be well poised to change the IT landscape by ushering in a new generation of AI-driven products.”
“The joint Mist and Juniper solution delivers excellent visibility into the entire wired/wireless stack and uniquely leverages AI for proactive automation, making it a perfect fit for our campus environment,” said Mitch Davis, Vice President and CIO at Dartmouth College. “I am excited to see these two best-of-breed solutions tightly aligned and I look forward to seeing even more integration and innovation going forward, as it is key to our mission of delivering world-class IT experiences to our students, faculty, staff and guests.”