Exclusive: Saudi Aramco unit in talks to invest $1 billion in US software maker Mavenir, sources say

NEW YORK, Nov 22 (Reuters) - Saudi Aramco's (2223.SE), opens new tab digital arm is in talks to take a significant minority stake in Mavenir, in a deal that is likely to value the U.S. telecommunications software maker at about $3 billion, people familiar with the matter told Reuters on Friday.

Aramco Digital is in talks to invest about $1 billion in Mavenir and a deal is likely to be signed before the end of the year, the sources said, cautioning that a transaction is not guaranteed.

Mavenir is working with investment bank Evercore (EVR.N), opens new tab on its talks with Aramco Digital, the sources said, requesting anonymity as the discussions are confidential.

The deal by Aramco Digital, the wholly-owned technology subsidiary of the oil giant, would be its first major transaction in the telecommunications industry as part of Saudi Arabia's Vision 2030 plan, which focuses on technological advancements and economic diversification.

Aramco and Evercore did not immediately respond to requests for comment. Mavenir declined to comment.

The telecom equipment industry, which has long been dominated by vendors such as Sweden's Ericsson (ERICb.ST), opens new tab, Finland's Nokia (NOKIA.HE), opens new tab and China's Huawei, is one of the few critical areas where U.S. companies do not have a significant presence.

Richardson, Texas-based Mavenir is a pioneer in a technology called Open Radio Access Network (Open RAN) that promises to radically cut costs for telecom operators building a mob...
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