Riyadh - Sharikat Mubasher: Saudi Aramco’s digital arm, Aramco Digital, is in talks to acquire a significant minority stake in Mavenir, the US telecommunications software company, for $1 billion.

The deal is expected to be signed before the end of the year, people familiar with the matter told Reuters.

This would be Aramco Digital’s first major transaction in the telecommunications industry, in alignment with Vision 2030’s economic diversification goal. Additionally, Mavenir is working with investment bank Evercore on its talks with Aramco Digital.

Mavenir is a pioneer in Open Radio Access Network (Open RAN) technology that contributes to cutting costs for telecom operators building a mobile network. It uses cloud-based software and allows the use of gear from many suppliers instead of relying on a handful of companies.

It is worth noting that Mavenir has so far raised at least $800 million in various funding rounds.