Radisys announced a definitive agreement to acquire privately held Continuous Computing for USD 105 million. The company will pay USD 73 million in cash and 3.7 million in shares for the takeover, as well as earn-out payments based on revenues from a set of Trillium products over a three-year period. In lieu of the earn-out payments, Radisys has the right to make a one-time payment of cash and/or Radisys shares of USD 15 million up to 18 months after the closing date. The takeover is expected to close by the end of June. Radisys said the acquisition will expand its presence in the high-growth areas LTE, small cells and DPI, with Continuous Computing's ATCA platforms and Trillium software. The over 150 customers at Continuous Computing are also complementary, and the acquisition brings a strong leadership team and a talented group of employees. Mike Dagenais, Continuous Computing CEO, will become Radisys' CEO after the deal closes, while Brian Bronson will remain CFO. Scott Grout, current CEO of Radisys will become Vice Chair of the Radisys board. The transaction is expected to add to Radisys' adjusted earnings by no later than the first quarter of 2012. Radisys also reported first-quarter results showing revenues up 9.4 percent year-on-year to USD 73.6 million. The gross margin fell to 27.5 percent from 30.2, while net loss narrowed to 2 cents a share from 4 cents a year ago. Cash flow from operating activities was USD 5.9 million, and Radisys had USD 132.8 million in total cash at the end of quarter.
