Saudi Arabia-owned petroleum and gas giant Saudi Aramco is set to acquire a minority stake in U.S. telecommunications software maker Mavenir, according to a recent report by Reuters.
Saudi Aramco is reportedly set to invest $1 billion in Mavenir through its digital and tech assets subsidiary Aramco Digital. The deal would place a valuation of around $3 billion on Mavenir.
The deal between Saudi Aramco and Mavenir is expected to be finalized by the end of 2024. However, sources close to the matter say that the talks could still break down at some point.
Reuters also reports that Saudi Aramco and Mavenir’s negotiations also include a separate deal. The two sides would invest $200 million in a joint venture that would focus on technology development in Saudi Arabia.
Mavenir was founded in 2017 as a result of a merger between three companies: Xura, Manevir Systems, and Ranzure Networks. The Richardson, Texas-based firm provides Open Radio Access Network (ORAN) technology, which is cloud-based and provides “interoperation between cellular network equipment.” This allows telecom operators to build their mobile networks at an affordable cost while using equipment from different manufacturers.
Mavenir previously intended to go public in 2020 but ended up going back on this plan due to market volatility.