Hewlett Packard Enterprise (HPE) is currently in discussions to acquire Juniper Networks, a network gear maker, in a deal estimated at around $13 billion, as reported by an insider to Reuters on Monday. The potential deal might be officially announced later this week, with HPE’s shares witnessing a 7.7% decline and Juniper experiencing a 21% surge in extended trading.

The acquisition is viewed as a strategic move to enhance the technological capabilities of HPE, a company with almost a century-long history. According to a Wall Street Journal (WSJ) report earlier on the same day, the deal would particularly strengthen HPE’s artificial intelligence (AI) offerings, aligning with its efforts to advance in this field.

While Hewlett Packard Enterprise refrained from commenting on the WSJ report, Juniper Networks has yet to respond to Reuters’ request for a statement. Notably, HPE had previously announced the launch of a cloud computing service last year, specifically designed to support AI systems similar to ChatGPT.

Juniper Networks is recognized for its high-performance network and service solutions, encompassing routing, switching, Wireless Fidelity (Wi-Fi), network security, AI-enabled enterprise networking operations (AIOps), and software-defined networking (SDN) technologies. If the acquisition proceeds, it could bring together complementary strengths from both companies in the evolving landscape of networking and AI.