Saudi Aramco’s digital arm, Aramco Digital, is in advanced talks to acquire a significant minority stake in U.S.-based telecommunications software firm Mavenir, in a deal expected to value the company at approximately $3 billion. Sources reveal Aramco Digital plans to invest $1 billion, with the agreement likely to close by year-end.
This marks Aramco Digital’s first major venture into the telecom industry, aligning with Vision 2030, Saudi Arabia’s initiative to advance technology and diversify its economy. The deal also includes a $200 million joint venture for regional technology development and builds on Aramco’s recent moves, such as its partnership with Intel to create Saudi Arabia’s first Open RAN development center.
Mavenir, based in Texas, specializes in Open Radio Access Network (Open RAN) technology, which reduces telecom network costs by using cloud-based solutions and interoperable hardware. This innovation challenges industry leaders like Ericsson, Nokia, and Huawei. Open RAN has gained U.S. government support due to its potential to reduce reliance on non-American vendors.
If finalized, this deal would likely undergo a U.S. national security review, but existing U.S.-Saudi agreements on 5G and 6G collaboration could smooth the process. For Mavenir, the Saudi investment offers an opportunity to upgrade its 5G technology and prepare for 6G rollouts, crucial as the telecom sector navigates a challenging economic period.
This move underscores Aramco’s commitment to leveraging technology for economic transformation and strengthening its global footprint in innovation.