Radisys has taken a shot to consolidate the growing Advanced Telecommunications Computing Architecture (ATCA) market by reaching a deal to acquire Continuous Computing for $120 million in cash and stock.
Under the terms of the agreement, Radisys will fund the deal with $73 million in cash and 3.67 million shares valued at about $32 million in addition to a one-time payment of about $15 million.
With the boards of both companies having already given their approval of the deal, they expect to close the deal in June after meeting customary closing conditions.
By acquiring Continuous Computing, Radisys will enhance its ATCA portfolio with new 3G and 4G Wireless infrastructure, Small Cell base stations, Traffic Management, Internet Offload and Network Security solutions.
Radisys also will be able to diversify its customer base with 150 of Continuous Computing's existing customers.
When the deal is complete, Mike Dagenais, Continuous Computing President and CEO, will become RadiSys' Chief Executive Officer, while Scott Grout, current President and Chief Executive Officer of RadiSys will become Vice Chair of the RadiSys Board of Directors. Current Chief Financial Officer of RadiSys will become RadiSys' President and Chief Financial Officer.
While it will take time to complete the integration of the two companies, the broader capabilities of the new Radisys is something that traditional telecom equipment providers will take notice of as they apply ATCA to increase their own time to market for new products.
- see the release (PDF)
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