Reliance plans to finance the transaction through its own internal accruals.Reliance Industries (RIL) is set to acquire Radisys Corporation, a US-based telecom solutions provider.
According to sources, RIL picked up a 100 per cent stake in Radisys for $74 million, reported news agency IANS.
Radisys and RIL have entered into an agreement under which Reliance will acquire Radisys for $1.72 per share in cash, said the two companies in a press release.
The acquisition will further accelerate Jio's global innovation and technology leadership in the areas of 5G, IOT (Internet of Things) and open source architecture adoption, further said the release.Radisys is a major player in providing open telecom solutions to service providers worldwide and is headquartered in Hillsboro, Oregon.
It has nearly 600 employees with an engineering team based out of Bengaluru.
However, the deal is subject to certain regulatory and statutory approvals and is expected to close in the fourth quarter of 2018.
Reliance plans to finance the transaction through its own internal accruals."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," said Akash Ambani, director of Reliance Jio."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..," said Brian Bronson, CEO of Radisys.