Hewlett Packard Enterprise Co. has secured financing commitments for its US$14 billion purchase of Juniper Networks Inc.

Spring, Texas-based HPE is planning to fund the acquisition with $14 billion of term loans, according to a statement out Tuesday. The committed financing is being provided by Citigroup Global Markets Inc., JPMorgan Chase Bank N.A. and Mizuho Bank Ltd., reads the release.

The financing will eventually be partially replaced “with a combination of new debt, mandatory convertible preferred securities, and cash on the balance sheet,” according to the announcement. 

The deal marks one of the largest committed debt financings for an M&A transaction since Broadcom Inc. secured up to $28.4 billion of term loans to fund its acquisition of VMware Inc. in August. Debt dealmakers are optimistic that an uptick in M&A activity will lift investment-grade bond volume this year, following the worst year for transactions in a decade.

HPE, a maker of data center hardware, will pay $40 a share in cash for Juniper, the companies said in the Tuesday statement. It’s a move that will expand its presence in the networking business but has also raised skepticism from Wall Street.

The companies expect the acquisition, which has been approved by both boards, to be completed late this year or in early 2025, subject to approvals by regulators and Juniper shareholders, and other customary closing conditions.