Saudi Aramco's digital subsidiary, Aramco Digital, is currently in negotiations to acquire a significant minority stake in the U.S. telecom software firm Mavenir, which could potentially value the company at around $3 billion. Reports indicate that Aramco Digital may invest approximately $1 billion in this venture, with discussions being facilitated by investment bank Evercore. The deal is expected to finalize by the end of 2024, marking a significant move in the telecommunications sector [2463518a].
This investment aligns with Saudi Arabia's Vision 2030, a strategic framework aimed at diversifying the economy and advancing technology within the kingdom. Mavenir, based in Richardson, Texas, specializes in Open RAN technology, which is pivotal for modernizing telecom networks. In addition to the stake acquisition, Aramco Digital plans to inject $200 million into a joint venture focused on regional tech development [2463518a].
However, the potential Saudi investment has raised concerns regarding cybersecurity and regulatory scrutiny, particularly given the sensitive nature of telecommunications infrastructure in the U.S. The establishment of an Open RAN center in Saudi Arabia in collaboration with Intel could further enhance Mavenir's competitive edge in the market [2463518a].