Sept 9 (Askume) – Artificial intelligence server maker Hewlett Packard Enterprise (HPE.N) announced its $1.35 billion acquisition of Juniper Networks (JNPR.N) in mandatory convertible preferred stock , sending its shares down 6.4% in after-hours trading.
Earlier this year , VMware said it would acquire the networking equipment maker in a $14 billion cash deal to expand the company’s artificial intelligence offerings.
Apache said the net proceeds from the offering will be used to pay fees and expenses related to the pending acquisition.
A convertible preferred stock offering allows investors to purchase preferred stock, which typically earns higher dividends than common stock. Investors also have the option of converting preferred shares into common shares.
The preferred shares offered by Apache will automatically convert into a number of shares of common stock on or about September 1, 2027, unless already redeemed or converted.
Investment banks Citigroup, JPMorgan Chase & Co. and Mizuho Bank will serve as joint bookrunners for the offering, the company said.
Last week , VMware raised its annual profit forecast, citing rising corporate spending on artificial intelligence infrastructure, driving demand for artificial intelligence servers.
