RadiSys Enters into Agreement to Acquire Intel's Modular Communications Platforms ATCA, cPCI, &
Subject: General Tech | September 10, 2007 - 06:42 PM | Jeremy Hellstrom
SANTA CLARA, Calif., Sept. 10, 2007 - RadiSys Corporation and Intel Corporation today announced that they have signed a definitive agreement for Intel to sell certain assets of its modular communications platforms business to RadiSys. The acquisition will further RadiSys' global leadership position in ATCA platforms and solutions for telecommunication equipment manufacturers worldwide and is expected to close in September, subject to normal closing conditions. The consideration for this transaction will consist of a purchase price of $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.
"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. "With a 20-year history of technology leadership and customer commitment in the communications and embedded segments, and as a Premier member of the Intel Communications Alliance, RadiSys is the perfect home for these products and customers. The addition of the Intel modular communication assets to our award winning Promentum product family helps us accelerate our ATCA product strategy, broadens our customer base and expands our addressable market."