Messaging infrastructure company Xura’s parent company sought to increase the scope of its virtualisation and 5G play by acquiring the mobile division of Mitel and Ranzure Networks.
A yet-to-be-formed company will offer products combining: Mitel Mobile’s VoLTE, Voice over Wi-Fi, RCS, radio access and packet core platform; Ranzure Network’s 5G Cloud RAN technology; and Xura’s cloud business.
For the Mitel deal, Xura’s backers will pay $350 million in cash, a $35 million non-interest bearing promissory note and an equity interest in Sierra Private Investments – a limited partnership set to own both Xura and the new mobile division. No details were given on the fee for acquiring Ranzure.
Pardeep Kohli, formerly of Mitel Mobile and co-founder and CEO of Ranzure Networks was appointed as CEO of Xura, and will serve as the CEO of the combined company once the two transactions are complete.
Announcing the new structure, Kohli said: “Our new company will offer a fully-virtualised, software-based solution set across every layer of the mobile network infrastructure stack, including radio access, packet core and 5G applications.
“We look forward to partnering with our customers to achieve operational efficiencies as they prepare to handle the exponential traffic growth that the industry’s IoT and 5G applications will bring.”
The acquisitions are subject to regulatory approval and are expected to be complete in Q1 2017.
Xura is the company created by Comverse after it acquired – and merged with – UK-based messaging company Acision in June 2015.