Sunday, September 9, 2007

RadiSys to Acquire Intel's Modular Communications Platforms

RadiSys will acquire certain assets of Intel's modular communications platforms business, including its ATCA platforms and certain PCI products, for $25 million plus $6.75 million of inventory and other considerations. RadiSys expects the transaction to add at least $50 million of ongoing revenue per year once integrated into RadiSys' operations. The deal is expected to close this month.

The acquisition extends RadiSys "Promentum" AdvancedTCA (ATCA) product family. Products associated with the sale include ATCA compute and packet processing blades, ATCA chassis, and Chassis Management Hardware and Software Modules, AMC module as well as cPCI blades, cPCI chassis, and other legacy systems products. A significant number of the employees associated with these product lines, including engineering, product testing/validation, operations and marketing personnel are expected to accept offers from RadiSys and transition with the product lines.

"RadiSys is pleased to add the Intel modular communications platform assets to our product portfolio and is committed to ensuring our new customers needs are well serviced both in the short and long term," said Scott Grout, RadiSys president and CEO.

Intel said the sale sharpens its focus on communications and embedded market segments that are aligned with its core businesses, which include processors and other silicon components for telecom. The planned sale does not impact Intel's carrier-grade rack mount servers product lines.

  • In June 2007, RadiSys introduced an Advanced Telecommunications Computing Architecture (ATCA) Digital Signal Processing (DSP) blade that hosts up to 20 multi-core MSC8144 DSPs from Freescale Semiconductor, providing a major boost in processing power required in next-generation VoIP, media processing and media gateway solutions. The new Promentum ATCA-9100 Media Resource Module features a mezzanine design to host a farm of up 20 of these quad-core, Freescale DSPs. This reduces the hardware footprint of such next-gen telecom systems by over 50 percent while attaining the same media processing capacity. The mezzanine design also allows telecommunications equipment manufacturers to upgrade over time from one generation of DSP to another without a complete overhaul of the blade.

  • In September 2006, RadiSys completed its acquisition of Convedia, a leading supplier of IP media processing technologies and IP media server products. RadiSys paid $105 million in cash at closing.