Jio Platforms, the digital arm of Reliance Industries Ltd, will buy telecom equipment maker Mimosa Networks for 60 million dollars as it looks to boost 5G telecom and broadband services.
Radisys Corporation, a subsidiary of Jio Platforms, has signed a definitive agreement with US holding company Airspan Networks to acquire "Mimosa Networks for 60 million dollars in cash and zero debt," the two companies said in a statement.
While Jio Platforms owns India's largest telecom company, Reliance Jio Infocomm, Mimosa owns a range of point-to-multipoint products based on WiFi-5 and newer WiFI 6E technologies, as well as related accessories.
“These solutions have use cases in 5G and FTTX/FWA connectivity requirements,” the statement said. Jio has been one of Mimosa's most important clients.
The deal comes at a time when countries around the world are looking to move away from Chinese technology.
Airspan purchased Mimosa in 2018 to focus on fixed wireless access network connections that are affordable.
Mimosa's 56-person product development, manufacturing and sales teams will continue with Mimosa following the Radisys acquisition.
Speaking about the deal, Matthew Omin, President of Jio, said: "Over the years, our collaboration with Airspan has resulted in innovative designs for high-speed connectivity for delivery and end-user applications."
"The acquisition of Mimosa will accelerate Jio's innovation and leadership in telecommunications network products that deliver value to consumers and businesses around the world through cost-effective and rapidly deployable fixed and mobile broadband," he said.
Erik Stonestrom, Airspan's president and chief executive officer, said the deal "not only places a highly-skilled product team at one of the world's most innovative and transformational technology and telecommunications companies, but also strengthens Airspan's bottom line and It allows the company to pursue 4G and 5G private networks and MNO networks that have been our primary focus.”
Reliance Jio Infocomm USA Inc., a wholly owned subsidiary of Jio, is a shareholder in Airspan and retains a seat on its board of directors.
The transaction is subject to other customary and regulatory closing conditions.
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