Aramco Digital, the technology subsidiary of Saudi Aramco, is contemplating a significant investment in the US-based telecoms technology company, Mavenir. According to insiders speaking to Reuters, Aramco Digital may acquire a $1 billion minority stake, potentially valuing Mavenir at around $3 billion.
Such a financial infusion would be timely for Mavenir, which reportedly struggles with debt and cash flow pressures. The possibility of defaulting or restructuring without new funding looms over the Open RAN specialist as noted in a report by Light Reading. The report references financial analysts from S&P Global, indicating that Mavenir needs urgent financial assistance.
One of Mavenir’s main challenges is the slow adoption of Open RAN technology, which is based on an open, disaggregated network infrastructure approach. While there are some successes, such as with Dish in the US and Rakuten Mobile in Japan, the mainstream market remains dominated by industry giants like Nokia, Ericsson, and Huawei.
Despite these challenges, interest in Open RAN persists. Earlier this year, Aramco Digital, in collaboration with Intel, established Saudi Arabia’s first Open RAN Development Centre. Aramco Digital, under the leadership of Tareq Amin, formerly of Rakuten Mobile, aims to diversify Aramco’s ventures as part of Saudi Arabia’s Vision 2030 initiative.
In this endeavor, Aramco Digital is not only considering investing in Mavenir but also exploring a $200 million joint venture focused on regional technology development.
Reports suggest that the partnership discussions might finalize by the year’s end. If successful, this could provide a stable platform for Mavenir to continue its operations and potentially expand its influence in the global market.
