The acquisition of open telecom solutions provider Radisys by Reliance Industries is subject to statutory and regulatory approvals and nod of Radisys' shareholders. The deal is slated to close in the fourth quarter of 2018.
PTI New Delhi Last Updated: June 30, 2018 | 17:45 IST
Reliance Industries has signed an agreement to acquire US-based open telecom solutions provider Radisys, according to a statement. The cash acquisition is aimed at cementing Jio's position in futuristic areas such as 5G and Internet of Things (IoT). Sources familiar with the development said that the deal involves a valuation of roughly $74 million, and that Radisys will be delisted post the acquisition.
With headquarters in Hillsboro, Oregon, Radisys has nearly 600 employees. The Nasdaq-listed company also has an engineering team in Bangalore, 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," Akash Ambani, Director of Reliance Jio said.
The acquisition is aimed at accelerating 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," Brian Bronson, CEO of the US based company said.