Saudi Aramco’s digital arm plans a major $1 billion investment in Mavenir, aiming to advance telecom innovation and regional development.
According to Reuters, Aramco Digital is negotiating to acquire a significant minority stake in Mavenir, valuing the company at $3 billion. The deal, expected to finalize by year-end, aligns with Saudi Arabia’s Vision 2030, emphasizing technology and economic diversification.
The report revealed Mavenir enlisted Evercore for advisory support during confidential talks with Aramco Digital. This would mark Aramco Digital’s first major telecom venture and highlights Saudi Arabia’s push for technological leadership.
Mavenir’s Role in Open RAN Tech
Texas-based Mavenir leads in Open Radio Access Network (Open RAN), a technology that reduces costs for telecom operators. By leveraging cloud-based software, Open RAN enables diverse supplier integration, moving away from dependency on traditional telecom giants like Ericsson and Huawei.
Open RAN adoption gained momentum under U.S. administrations prioritizing American tech presence. However, its features have yet to fully match traditional vendor solutions. Despite this, companies like AT&T and governments continue supporting its growth.
Strengthening U.S.-Saudi Tech Collaboration
Alongside the $1 billion stake, Aramco Digital plans to invest $200 million in a joint venture with Mavenir. This partnership aims to advance telecom technologies within the region. Additionally, the Biden administration’s 2022 agreement with Saudi Arabia supports cooperation on 5G and 6G networks.
Aramco Digital has already announced plans for Saudi Arabia’s first Open RAN development center, collaborating with Intel. A cash infusion from Aramco could strengthen Mavenir’s 5G offerings and position it for the anticipated 6G rollout.
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