Hewlett Packard Enterprise has reached a settlement with the Justice Department that could clear the way for its $14 billion takeover of rival Juniper Networks.

The Justice Department had sued to block the acquisition, saying it could eliminate competition, raise prices and reduce innovation.

The settlement, which is subject to court approval, calls for Hewlett Packard Enterprise to divest its global Instant On campus and branch business. Hewlett Packard Enterprise will facilitate limited access to Juniper's advanced Mist AIOps technology once the deal closes.

"Our agreement with the DOJ paves the way to close HPE's acquisition of Juniper Networks and preserves the intended benefits of this deal for our customers and shareholders, while creating greater competition in the global networking market," Antonio Neri, president and CEO of HPE, said in a statement.

Last year Hewlett Packard Enterprise announced that it was buying Juniper Networks for $40 a share in a deal expected to double HPE's networking business. Juniper provides routers, switching gear and network security products from its headquarters in Sunnyvale, California.

The Justice Department's intervention -- the first of the new administration and just 10 days after Donald Trump's inauguration -- came as somewhat of a surprise at the time. Most predicted a second Trump administration would ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden's watch.

Shares of Hewlett Packard Enterprise surged more than 12% in Monday afternoon trading, while Juniper Networks' stock climbed more than 8%.