Jio Platforms, a subsidiary of Indian conglomerate Reliance Industries Ltd, has announced its intention to acquire communications equipment manufacturer Mimosa Networks for $60 million. The acquisition is aimed at bolstering Jio’s expanding 5G and broadband services, according to a joint statement from the two companies.
The deal is between Radisys Corp, a unit of Jio Platforms, and US-based Airspan Networks Holdings, which owns Mimosa. The acquisition will provide Jio with a portfolio of point-to-point and point-to-multipoint products based on WiFi 5 and WiFi 6E technologies, as well as related accessories.
Jio, India’s leading telecom service provider, is ramping up its 5G and broadband services across the country after acquiring airwaves worth $11 billion in a 5G spectrum auction last year. The acquisition of Mimosa Networks is expected to further strengthen its position in the sector.
The statement also notes that Reliance Jio Infocomm USA, a unit of Jio, is a shareholder in Airspan and has a seat on its board. Reliance has been making several investments in the telecom space and had chosen Nokia as a major supplier last year to expand next-generation wireless services across India.
The recent procurement of Mimosa Networks by Jio Platforms has engendered significant attention in the telecommunications industry, primarily in light of the present global climate surrounding network security. The acquisition arrives at a moment when certain governments, such as India, have either banned or discouraged the utilization of China’s Huawei in national networks due to apprehensions regarding data security.
Jio Platforms’ acquisition of Mimosa Networks is liable to be perceived as a practical alternative to Huawei, which has been under profound scrutiny over supposed security apprehensions. Through this manoeuvre, Jio Platforms has demonstrated its commitment to furnishing secure and dependable network amenities to its patrons, while also addressing the concerns of governments and regulatory bodies.
The transaction is subject to certain regulatory and other customary closing conditions, as well as approval by Airspan’s senior lender. The deal is expected to be completed in the third quarter of 2023.
Overall, the acquisition of Mimosa Networks is expected to further bolster Jio’s position as a leading player in the Indian telecoms sector. The move comes as Jio seeks to capitalize on the growing demand for high-speed internet services in the country, particularly in light of the Covid-19 pandemic which has led to a surge in demand for remote working and online education. The acquisition is also expected to provide Jio with access to cutting-edge technology, which will enable it to compete more effectively with its rivals in the market.