Juniper buys Netscreen for $4bn

Juniper Networks, the world's second-biggest maker of Internet networking equipment, has agreed to buy Netscreen Technologies.

The companies agreed a share swap that values Netscreen at $4bn (£2.2bn; 3.1bn euros). Juniper will swap 1.4 of its shares for each Netscreen equity.

Analysts said the merger will allow Juniper to expand its client base and close the gap on rival Cisco Systems.

Netscreen shares jumped more than 40% on the news, while Juniper stock slid.

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Juniper's chief executive Scott Kriens said that expansion, not cost cutting was the reason behind the move.

The majority of Juniper's clients are service providers such as phone companies Verizon and Deutsche Telekom.

Netscreen, meanwhile, usually deals with corporate customers including McDonald's and Merrill Lynch.