Reliance announced it has a deal in place to buy Radisys, which Reliance said would bolster its mobile division's 5G and IoT capabilities.
India-based Reliance didn't announce the terms of the sale, but did say it was paying $1.72 per share in cash for Radisys. Once the deal clears the usual closing conditions and regulatory approvals, it's expected to close in the fourth quarter of this year.
Hillsboro, Oregon-based Radisys has close to 600 employees with an engineering team based out of Bangalore, India, and sales and support offices globally. Reliance didn't say if it was keeping all of Radisys' employees. In a prepared statement, Radisys CEO Brian Bronson said that the company would "continue to work independently on driving its future growth, innovation and expansion."
In its most recent first quarter, Radisys reported a loss of $6.4 million, which was a loss of 16 cents per share. Despite the loss, the results beat Wall Street expectations, according to the Associated Press.
Radisys provides NFV software and hardware service capabilities to the telecom industry. One of its recent customer wins was working with Orange to deploy a virtualized media processing platform in the Open Network Automation Platform (ONAP.) Radisys was also mentioned as a systems integrator in the Open Networking Foundation's plan for putting open-source, next-generation SDN solutions into production mode.
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Radisys was founded in 1987 by former Intel employees with later funding from Tektronix. Radisys' revenue hit a high-water mark of $376 million in 2008, but was down to $133.7 million last year.
Reliance Industries Limited bills itself as the largest company in India's private sector. Reliance Jio is a mobile operator that competes against Airtel and Vodafoine in India. In addition to 5G and IoT, Reliance said it was buying Radisys for its open source architecture adoption.