Reliance To Acquire Radisys To Accelerate 5G, IoT Push

Reliance Industries Limited ("RIL" or "Reliance"),  India's largest private sector company, announced that it has agreed to acquire Radisys Corporation ("RSYS") for USD 1.72 per share in cash.  So total deal should be around USD 74 million.

The acquisition is aimed at accelerating Reliance Jio’s innovation and technology position in the areas of 5G, Internet of Things (IoT) and open source architecture adoption. The 5G is a new cellular communication technology is touted as a defacto standard in near future. 5G will drive growth of IoT market where connected devices will scale to millions of devices worldwide.

Headquartered in Hillsboro, Oregon, Radisys is a leader in providing open telecom solutions to service providers worldwide with sales and support offices globally. Radisys has nearly 600 employees with an engineering team based out of Bangalore, India.

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.

Director of Reliance Jio, Akash Ambani, 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 the value to customers across consumer and enterprise segments. 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’ ability to develop and integrate large-scale, disruptive, open-centric end-to-end solutions.”

As per the announcment at Radisys, the transaction is subject to certain customary closing conditions, including regulatory approvals and approval of Radisys’ shareholders. The transaction is expected to close in the fourth quarter of 2018. RIL intends to finance the transaction through its own internal accruals.