Reliance Industries Ltd. has agreed to purchase Radisys Corp. (NASDAQ:RSYS) for $1.72 per share in cash, a valuation of $74 million. Reliance is India’s largest private sector company with interests in a variety of areas, including communications via its Reliance Jio mobile services arm. The company expects the acquisition of the telecommunications open software and hardware and services company will boost Jio’s prospects in 5G, Internet of Things (IoT), and open architectures.
The deal is subject to customary closing conditions, including regulatory approvals and the approval of Radisys’ shareholders. Reliance expects to close the transaction in the fourth quarter of 2018.
Based in Hillsboro, OR, Radisys employs almost 600 people, including an engineering team based out of Bangalore, India. Its customers include both service providers and telecom equipment vendors.
“Reliance and Jio have been disrupting legacy business models and establishing new global benchmarks. Radisys’s 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. “This acquisition further accelerates Jio’s global innovation and technology leadership in the areas of 5G, IoT, and open source architecture adoption.”
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’s ability to develop and integrate large-scale, disruptive, open-centric end-to-end solutions.”
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