Reliance Industries (RIL) has entered into a definitive agreement to acquire Nasdaq-listed Radisys Corporation, a global player in open telecom solutions, for $1.72 per share in cash.
The deal size works out to be $74 million or approximately Rs. 510 crore based on current outstanding and dilutive equity share impact.
Commenting on the deal, Akash Ambani, director, Reliance Jio, said, “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 value to customers across consumer and enterprise segments.”
Headquartered in Hillsboro, Oregon, Radisys has close to 600 employees, with an engineering team based out of Bengaluru, and sales and support offices globally.
“This acquisition further accelerates Jio’s global innovation and technology leadership in the areas of 5G, IoT and open source architecture adoption,” Mr. Ambani added.
Radisys delivers value to service providers and telecom equipment vendors by providing disruptive open-centric software, hardware and service capabilities that enable the migration to next-generation network topologies, said a Reliance statement.
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.”
‘To close in Q4 of 2018’
The transaction is subject to certain customary closing conditions, including regulatory approvals and approval of Radisys’ shareholders, and is expected to close in the fourth quarter of2018. RIL intends to finance the transaction through its own internal accruals.
Covington & Burling LLP is acting as legal adviser and Ernst & Young provided diligence and tax advisory services to RIL.
Raymond James & Associates, Inc. is acting as financial adviser and Baker & McKenzie LLP is acting as legal advisor to Radisys.
RIL shares rose 3% to Rs. 973 on the BSE in a firm Mumbai market on Friday.