Aramco Digital Explores $1bn Stake in Mavenir Deal

Aramco Digital, the tech arm of Saudi Aramco, is in advanced talks to acquire a significant minority stake in U.S. telecom software maker Mavenir, valuing the company at approximately $3 billion, sources familiar with the matter revealed. The potential $1 billion investment could be finalized by year-end, though the deal is not guaranteed, they cautioned.

Mavenir, advised by investment bank Evercore, has been exploring strategic investments to bolster its position in the telecom sector. Neither Aramco nor Evercore responded to requests for comment, while Mavenir declined to address the discussions, citing confidentiality.

This deal would mark Aramco Digital’s first major foray into telecommunications, aligning with Saudi Arabia’s Vision 2030 initiative to diversify its economy through technological innovation. As part of the agreement, Aramco Digital is also reportedly negotiating a $200 million investment in a regional joint venture with Mavenir to advance telecom technologies.

Mavenir, based in Richardson, Texas, is a leader in Open Radio Access Network (Open RAN) technology, which uses cloud-based software to reduce costs for telecom operators and enables interoperability among equipment from multiple suppliers. The company has raised over $800 million in funding to date and remains a key player in the push for Open RAN adoption.

While Open RAN technology has seen mixed success in global markets, it gained momentum during the Trump administration’s efforts to counter Huawei’s influence. Despite lukewarm adoption, recent developments—such as AT&T’s $14 billion Open RAN deal with Ericsson—signal renewed interest.

The proposed investment from Aramco could help Mavenir advance its 5G capabilities and prepare for the rollout of 6G networks later this decade. Additionally, Aramco Digital plans to establish Saudi Arabia’s first Open RAN development center in collaboration with Intel, highlighting its commitment to driving telecom innovation in the region.

The deal is likely to face a U.S. national security review, but it comes amid a 2022 U.S.-Saudi agreement to collaborate on 5G and 6G networks, potentially smoothing regulatory hurdles. A cash infusion from Aramco could provide Mavenir with a much-needed boost during a challenging period for the telecom industry.