Aramco Digital Eyes Major Stake in Mavenir, Valuation Hits $3 Billion

Saudi Aramco's digital arm is negotiating a $1 billion investment for a minority stake in Mavenir, valuing it at around $3 billion. This move aligns with Saudi Arabia's Vision 2030, signifying Aramco Digital's major entry into telecoms, focusing on Open RAN technology and further U.S.-Saudi tech collaborations.

Saudi Aramco's digital subsidiary is reportedly in negotiations to acquire a substantial minority stake in Mavenir, a U.S.-based telecommunications software company, with a potential valuation of $3 billion, industry insiders revealed on Friday.

The talks involve a $1 billion investment from Aramco Digital, with a deal potentially concluding by year's end. However, sources emphasize that a transaction is not guaranteed. Mavenir, collaborating with investment bank Evercore, is in confidential discussions with Aramco Digital as part of Saudi Arabia's Vision 2030 strategy, aimed at technological and economic diversification.

The prospective investment would mark Aramco Digital's inaugural significant foray into the telecommunications sector. Mavenir, known for its pioneering Open Radio Access Network (Open RAN) technology, stands to benefit from this partnership, enhancing its 5G capabilities and preparing for 6G deployment, amid a downturn in the global telecom industry.

(With inputs from agencies.)