Thursday, July 7, 2011

RadiSys Closes Acquisition of Continuous Computing

RadiSys completed its previously announced acquisition of Continuous Computing Corporation for approximately $73 million in cash, funded with cash on hand, and 3,665,460 shares of RadiSys common stock. In addition to the consideration payable at closing, RadiSys will make earn-out payments based on revenues generated by a specified set of Trillium products over a three year period following the closing of the acquisition.

Upon closing, 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.

The acquisition transforms RadiSys into a larger global market leader in embedded hardware and software. 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.

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