Reliance Jio director Akash Ambani. Photo: PTI
New Delhi: Reliance Industries Ltd (RIL) has signed an agreement to acquire US-based open telecom solutions provider Radisys Corp. at a valuation of $74 million, according to a statement by the energy-to-telecom firm. The cash acquisition is aimed at cementing Reliance Jio’s position in 5G and Internet of Things (IoT). Radisys will be delisted post the acquisition.
Headquartered in Hillsboro, Oregon, the Nasdaq-listed Radisys has nearly 600 employees, an engineering team in Bengaluru, along with sales and support offices globally, a joint statement by the two companies said.
“Radisys Corporation…a global leader of open telecom solutions…and Reliance Industries Limited, India’s largest private sector company have entered into a definitive agreement under which Reliance will acquire Radisys for $1.72 per share in cash,” the statement said. The deal is subject to statutory and regulatory approvals and nod of Radisys’ shareholders. It is slated to close in the fourth quarter of 2018.
RIL plans to fund the transaction through its internal accruals, the statement added. “Radisys’ top-class management and engineering team offer Reliance rapid innovation and solution development expertise globally, which complements our work towards software-centric disaggregated networks and platforms, enhancing the value to customers across consumer and enterprise segments,” Reliance Jio director Akash Ambani said.
The acquisition is aimed at accelerating Reliance Jio’s innovation and technology position in the areas of 5G, IoT and open source architecture adoption. “The Radisys team will continue to work independently on driving its future growth, innovation and expansion. The addition of Reliance’s visionary leadership and strong market position will enhance Radisys’ ability to develop and integrate large-scale, disruptive, open-centric end-to-end solutions,” Radisys CEO Brian Bronson said.
With inputs from PTI