Jio Platforms, the digital arm of Reliance Industries Ltd, will buy communications equipment maker Mimosa Networks for USD 60 million as it looks to bolster its 5G telecom and broadband services.
Radisys Corporation, a subsidiary of Jio Platforms, signed a definitive agreement with US-based Airspan Networks Holdings for acquisition of "Mimosa Networks for USD 60 million on a debt free, cash free basis," the companies said in a statement.
While Jio Platforms is the owner of India's biggest telecom firm, Reliance Jio Infocomm, Mimosa has a portfolio of point-to-multi-point products based on WiFi-5 and the newer WiFI 6E technologies as well as related accessories.
"These solutions have use cases in the backhaul requirements for 5G and FTTX/ FWA rollouts," the statement said. "Jio has been a major customer of Mimosa." The deal comes at a time when countries across the world are looking to move away from Chinese technology.
Airspan acquired Mimosa in 2018 to target cost effective fixed wireless access network connections.
Mimosa's product development, manufacturing, and sales teams of 56 employees will continue with Mimosa following the acquisition by Radisys.
Speaking about the transaction, Mathew Oommen, President of Jio, said, "Over the years, our collaboration with Airspan has resulted in groundbreaking architectures for high-speed connectivity for both the end user and for backhaul applications." "Acquisition of Mimosa will further accelerate Jio's innovation and leadership in the production of telecom network products that deliver value to consumers and enterprises across the globe with cost-effective, rapidly deployable fixed and mobile broadband," he said.
Eric Stonestrom, Chairman and CEO of Airspan, said the transaction "not only puts a very capable product team with one of the world's most innovative and transformative technology and telecommunications companies, but it also strengthens Airspan's balance sheet enabling the company to pursue 4G and 5G private and MNO networks which have been our main focus." Reliance Jio Infocomm USA Inc, a wholly owned step-down subsidiary of Jio, is a shareholder of Airspan and maintains a seat on its Board of Directors.
PJT Partners acted as financial advisor to Airspan. Cravath, Swaine & Moore LLP and Dorsey & Whitney LLP acted as legal advisors to Airspan.
Covington & Burling LLP acted as legal advisors, and Ernst & Young acted as accounting and tax diligence advisor to Radisys.
The transaction is subject to certain regulatory and other customary closing conditions, including the Committee on Foreign Investment in the United States (CFIUS) review and approval by Airspan's senior lender, and is expected to complete in the third quarter of 2023.
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