Xura buys Mitel Mobility & Ranzure
Deal worth $385 million will create a new player in 5G-ready mobile network solutions
Affiliates of Xura have struck a deal to acquire Mitel Mobility and Ranzure to create a new player in 5G ready mobile network solutions.
Xura will launch pure-play, virtualised 5G solutions to run across mobile network infrastructure, aimed at tackling growing data demands driven by the internet of Things (IoT).
It has agreed to buy Mitel Mobile (formerly Mavenir Systems) from Mitel Networks, which offers Voice over LTE (VoLTE), Voiceover Wifi (VoWIFI) video ad RCS messaging solutions. It has also reached an agreement to buy Ranzure, which develops 5G cloud RAN solutions, and will fold both into Xura.
The combined company will operate from Dallas, Texas, and will be led by Ranzure CEO and co-founder Pardeep Kohli.Former Mavenir Systems CEO Kohli replaces Philippe Tartavull as Xura CEO, effective immediately.
Executive chairman of Xura Hubert de Pesquidoux, said: “Xura has undergone a significant transformation over the past two years, and in the last several months has successfully transitioned to private ownership with the backing and support of Siris Capital, a financial sponsor with deep experience and operational expertise in telecommunications.
“I would like to acknowledge Philippe Tartavull for his significant contributions to the company during this transformational period. Today’s announcement marks a new and exciting chapter for Xura, and will accelerate and enhance the combined company’s ability to grow and deliver value to its customers, partners and employees.”
Kohli will join the Xura board of directors alongside Mitel Mobile president BG Kumar, and former CTO of AT&T, Krish Prabhu.
The transaction is subject to regulatory approvals, but is expected to close in Q1 2017.
Commenting on the announcement, newly appointed Xura CEO Pardeep Kohli said: “I am honoured and excited to lead Xura and the combined company during this important and transformative time. Both Xura and Mitel Mobile have strong legacies of market-leading innovation and commitment to customer success. 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 will be the only pure play solution provider with no vested interest in maintaining and promoting proprietary solutions. 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.”