Continuous Computing Is Part of RadiSys
The acquisition is complete.
RadiSys Corporation (NASDAQ: RSYS), a leading provider of innovative hardware and software platforms for next generation IP-based wireless, wireline and video networks, closed the acquisition of Continuous Computing Corporation on Friday, July 8, 2011. The Company previously announced that it had entered into a definitive agreement to acquire Continuous Computing on May 3, 2011. Continuous Computing, now a wholly-owned subsidiary of RadiSys, develops communications systems consisting of highly integrated ATCA platforms and Trillium protocol software coupled with software Professional Services to complement their full solution offering. Their key customer applications include 3G and 4G Wireless infrastructure, Small Cell base stations, Traffic Management, Internet Offload and Network Security
Strategic and Financial Benefits
The Company believes the acquisition transforms RadiSys into a larger global market leader in embedded hardware and software for communications networks with unmatched scope, scale and expertise. The acquisition is expected to accelerate the Company’s strategy to deliver more differentiated platforms and solutions. Continuous Computing also brings expansion into high growth markets with many new customers, creating meaningful customer diversification. The acquisition benefits both Companies’ customers with a broader set of technologies and solutions including a combined set of ATCA platforms that are now developed and supported by a global team with greater scale and capability.
The acquisition is expected to expand the Company’s revenues, profitability and EPS with the addition of Continuous Computing’s approximately 50 percent gross margin Next Generation products. The combination is also expected to meaningfully expand the Company’s non-GAAP gross margin rate to the high 30’s by the end of 2012. The Company expects that the combined organization will benefit from economies of scale and meaningful expense and cost efficiencies in 2012 and beyond.
Management Changes
Effective upon closing of the acquisition, Mike Dagenais became RadiSys’ Chief Executive Officer and a member of the RadiSys Board of Directors, Brian Bronson became President and Chief Financial Officer of RadiSys and Scott Grout becomes Vice Chair of the RadiSys Board of Directors.
Mike Dagenais was previously Continuous Computing’s President and CEO and joined Continuous Computing in this role in December of 2006. Prior to that, he was President and CEO of Optical Solutions and led the company through a period of unprecedented growth, culminating in the successful acquisition of Optical Solutions by Calix Networks. He brings over 25 years of experience in the telecommunications industry, including prior executive and management positions at Convergent Networks, Lucent, and Nortel. Mr. Dagenais has a M.Eng. and a B.Eng. in electrical engineering from Carleton University in Ottawa, Canada.
“I am very excited about the opportunity to lead the combined company as CEO. Joining the assets of both RadiSys and Continuous Computing enables us to provide a broader range of higher value solutions to our customers. The capabilities of the unified company will enable our customers to accelerate their time to market and increase their differentiation and competitive advantage,” said Mike Dagenais, Continuous Computing President and CEO. “At Continuous Computing, we grew revenues over 25% in 2010, and I am excited about the combined revenue and earnings growth opportunities ahead.”
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