DPI Market: Radisys Acquires Continues Computing for $120M (Cash, Stock and Earn-outs)

  

RadiSys announced that "it has entered into a definitive agreement to acquire privately held Continuous Computing Corporation .. key customer applications include 3G and 4G Wireless infrastructure, Small Cell base stations, Traffic Management, Internet Offload and Network Security"

Background:

• DPI Announcements: Continuous Computing 200Gbps DPI Platform - here
• How to Build DPI Products? (Part II - System Design) - here.

"Consideration for the acquisition is comprised of approximately $73 million in cash, funded with cash on hand, and 3,666,667 shares of RadiSys common stock Assuming a stock closing price on May 2, 2011 of $8.69 the stock consideration represents $31.9 million. In addition to the consideration payable at closing, RadiSys will make earnout payments based on revenues generated by a specified set of Trillium products over a three year period following the closing of the acquisition. In lieu of the earn-out payments, RadiSys has the right to make a one-time payment of cash and/or RadiSys shares with a combined aggregate value of $15 million up to 18 months after the closing date"

See "RadiSys Reports Higher than Expected Q1 2011 Revenue and Announces Definitive Agreement to Acquire Continuous Computing" - here.

Brian Wood (picture), Continuous Computing's VP of Marketing states in the company Blog that "Over the coming months the acquisition will be going through regulatory review. In the meantime, Continuous Computing and RadiSys will be conducting business as separate companies as we do today — and we will stay focused on our Q2 and 2011 objectives"