The cooperation pact with Elliot Management comes after HPE settled a five-month legal dispute with the U.S. Department of Justice, paving the way for its acquisition of Juniper Networks.
Under the terms of the pact, HPE agreed to appoint Robert (Bob) Calderoni, who stepped in as Elliott Management’s choice for interim CEO and president of Citrix in 2021, as a member of the HPE board of directors and the chairman of a new Strategy Committee.
In addition, Calderoni will become a member of HPE’s Integration Committee, which was formed by the HPE board following the successful completion two weeks ago of the $13.4 billion HPE acquisition of Juniper Networks.
HPE said the agreement also includes an “information-sharing agreement that will allow for an ongoing dialogue” between Elliott Management and HPE.
“This is huge victory for Antonio and his overall strategy to make HPE an AI networking company,” said C.R. Howdyshell, CEO of Independence, Ohio-based Advizex, No. 129 on the 2025 CRN Solution Provider 500, a Fulcrum IT Partners company. “I didn’t see this coming. It’s a pleasant surprise and a vote of confidence in Antonio. It demonstrates there will be stability for the integration of the Juniper Networks acquisition over the next year, which is critical to making the networking strategy a success. It indicates Elliott Management has also bought into the HPE AI networking story with Juniper at least for now.”
The cooperation pact comes after HPE settled a five-month legal dispute with the U.S. Department of Justice, paving the way for the Juniper Networks acquisition.
Howdyshell said the cooperation pact clears the way for HPE and partners to aggressively move forward to capture networking market share.
“Even after the successful completion of the Juniper acquisition, partners were still on edge with regard to what Elliott Management would do,” he said. “They are known for replacing CEOs. The fact they have taken a seat on the board gives everyone confidence at this time that they are committed to the HPE strategy. This clears up Antonio’s future as CEO.”
Howdyshell said the agreement provides partners with the “stability and consistency” that is necessary to drive networking sales growth. “This is a big win for partners,” he said. “We are an extension of the HPE sales organization. You need that confidence to go win business.”
Howdyshell said he expects the cooperation pact to help Advizex double its networking business over the next year. “Networking is one of our three areas of focus this year along with AI and Everything as a Service,” he said.
Under the terms of the agreement, Elliott Management has agreed to a yearlong “standstill” along with a “mutual non disparagement” provision.
The agreement also provides Elliott Management with an option to add an Elliott Management employee to the board subject to the board’s approval.
To participate in the selection of new directors on the board, Elliott Management must beneficially own a “net long” position of at least 2 percent of HPE’s common stock.
“We appreciate the positive dialogue we have had with HPE’s Board and see substantial value ahead,” said Elliott Partner and Senior Portfolio Manager Jason Genrich in a prepared statement. “We believe Bob’s appointment to the Board and his leadership of the new Strategy Committee will help HPE identify meaningful operational and strategic opportunities for shareholder value creation. We are pleased with today’s outcome and look forward to continuing our collaboration with the Board and the management team to support HPE’s ongoing transformation.”
Scott Dunsire, CEO of Melillo Consulting, a longtime HPE partner, No. 240 on the 2025 CRN Solution Provider 500, characterized the cooperation pact as a “big win” for HPE at a pivotal moment for the company.
“This sends a strong message that Elliott Investment Management has confidence in HPE leadership and the AI networking strategy,” he said. “That stability is a good thing for HPE and its partners. HPE has been clear on where they are going with the strategy. This helps solidify that consistency and messaging, which is a good sign.”
Dunsire said stability and consistency is key for partners to drive sales growth with OEM partners like HPE. “In order to make investments with OEM partners, we need to see consistency in go-to-market and leadership. We don’t want to have to change course in three months because of a change in leadership. We are looking forward to growing our partnership with HPE in their strategic areas of focus including networking.”
