Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) has agreed to acquire Radisys Corporation, a US-based open telecom platform solutions provider, for $75 million (Rs 510 crore) in cash.
The acquisition has potential synergies with Reliance's investments in digital communication and services framework, which is built around 'network as a platform service', the energy-to-telecom conglomerate said in a stock-exchange filing.
This will also help in fostering innovation efforts through access to high-quality engineering talent, it added.
Oregon-headquartered Radisys was set up in 1987. It 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.
The transaction is subject to statutory and regulatory approvals, including approval from the committee for foreign investment in the US, and shareholders of Radisys. The deal is likely to be completed in three to six months' time frame.
RIL re-entered the telecom sector in India after a decade in late 2016 with the launch of unit Reliance Jio Infocomm Ltd and sent the mobile-phone industry in turmoil with cut-throat tariffs. Reliance Jio has rapidly expanded since then, and is likely already the country's second-largest carrier after Bharti Airtel Ltd according to some reports.
As part of its expansion, RIL is acquiring the wireless assets of Reliance Communications Ltd, the company led by Mukesh's younger brother, Anil Ambani.
The acquisition of Radisys adds to the deals RIL, which derives the biggest chunk of its revenue and profit from its energy business, has struck in recent months across the telecom, media and entertainment sectors.
In April, RIL decided to invest $180 million (Rs 1,175 crore) in ed-tech startup Embibe.
In March, RIL said it would merge music streaming service JioMusic with rival Saavn and that it would invest around $100 million to expand the platform.
Also in March, RIL’s retail unit picked up a 16% stake in US-based KaiOS Technologies, which provides operating system for its internet-enabled mobile handset JioPhone.
In February, it agreed to buy a 5% stake in New York Stock Exchange-listed movie producer Eros International PLC.