Saudi Aramco unit in talks to invest $1 billion in Mavenir

Saudi Aramco’s digital arm is in talks to take a significant minority stake in Maunir, in a deal that would value the U.S. telecommunications software maker at about $3 billion, people familiar with the matter told Reuters on Friday. It will be dollars. Invest about $1 billion in Mavenir and a deal is likely to be signed before the end of the year, sources cautioned that a transaction is not guaranteed.. Mavenir is working with investment bank Evercore on its discussions with Aramco Digital, the sources said, requesting anonymity, saying the talks are confidential. The deal for Aramco Digital, the oil company’s wholly-owned technology subsidiary, will be its first major contract. Transactions in the telecommunications industry, as part of Saudi Arabia’s Vision 2030 plan. diversification.Aramco and Evercore did not immediately respond to requests for comment. Mavenir declined to comment. The telecom equipment industry, long dominated by vendors such as Sweden’s Ericsson, Finland’s Nokia and China’s Huawei, is one of the few key sectors where US companies do not have a significant presence. The push to promote open RAN continued under the Biden administration, but it has not been widely adopted because emerging technologies cannot always match all the features that traditional telecom vendors can offer.. Last year, AT&T signed a $14 billion Open RAN deal with Ericsson for 70% of its wireless network traffic through the end of 2026, giving the sector a new boost. Sources said that the incoming TrumpManagement can also prioritize technology development. Aramco Digital announced in January its intention to build Saudi Arabia’s first open RAN development center in partnership with Intel, which is working with telecom firms such as Vodafone and Reliance Jio to develop the technology. Aramco Digital last week received a license to provide wireless services in Saudi Arabia. The cash from the Saudis will allow Mavenir to upgrade its 5G technology and better prepare for a 6G network in the latter half of the decade, at a time when the entire telecom industry is in turmoil. is