Billionaire Mukesh Ambani to acquire Radisys for Rs 500 crore
New Delhi : Indian business magnate Mukesh Ambani, the chairman of Reliance Industries is all set to get hold of Radisys Corporation, a US-based open telecom platform solutions provider, for Rs 510 crore in cash. It’s an idea to push telecom firm Reliance Jio’s plans.
Headquartered in Hillsboro, Oregon, Radisys is a market leader in providing open telecom solutions to service providers worldwide. The US-based company has nearly 600 employees with an engineering team based out of Bangalore, India, and sales and support offices globally, RIL said in a press release.
Taking stock of the synergies, RIL said that this achievement further accelerates Jio’s global innovation and technology leadership in the areas of 5G, IOT and open source architecture adoption. “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,” Akash Ambani, Director of Reliance Jio said in a statement filed on the exchanges.
Brian Bronson, CEO of Radisys 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.”
Interestingly, all the regulatory and other necessary clearances associated with the deal are expected to close in the fourth quarter of 2018. RIL intends to finance the transaction through its own internal growth, the company said in the release. Set up in 1987, Radisys is headquartered in Oregon. The company provides open-centric software, hardware and service capabilities that enable the migration to next-generation network topologies, RIL said.
Radisys reported revenue of $133.77 million for 2017, compared with $212.4 million the year before and $184.6 million for 2015. The NASDAQ-listed company has a market capitalisation of about $28.5 million. It also has a local unit, Radisys India Pvt. Ltd, based in Bengaluru.