MUMBAI: India’s largest private sector company Reliance Industries Ltd (RIL) has entered into an agreement with Radisys Corporation, US-based open telecom platform solutions provider, to acquire the latter. The deal involves a valuation of roughly $ 74 million or Rs 510 crore.
According to a PTI report, Radisys, a NASDAQ listed company will be delisted post acquisition. RIL will acquire the US-based company for $1.72 per share in cash.
Radisys has nearly 600 employees with an engineering team based out of Bangalore, India, and sales and support offices globally, a press release from the company said.
RIL hopes this deal will accelerate Jio’s global innovation and technology leadership in the areas of 5G, IoT and open source architecture adoption. Since the launch of its launch in 2016, RIL’s telecom venture Jio has been acquiring customers ata rapid pace.
“Reliance and Jio have been disrupting legacy business models and establishing new global benchmarks. 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.
Radisys CEO Brian Bronson said, “The backing and support of India-based global conglomerate Reliance, will accelerate our strategy and the scale required by our customers to further deploy our full suite of products and services. 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.”
The deal is subject to approvals from regulators and Radisys’ shareholders, and is expected to be officially sealed in the fourth quarter of 2018. RIL will finance the transaction through its own internal accruals.
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