Reliance Industries to Buy US telecom solutions firm Radisys

Mukesh Ambani-led Reliance Industries Ltd (RIL) has agreed to acquire a US-based open telecom platform solutions provider, Radisys Corporation 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.