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RadiSys last week announced that it entered into a definitive agreement to acquire privately-held Continuous Computing Corporation for approximately $120 million. Continuous Computing generated $56.6 million in revenue in 2010 and was an attractive target due to its portfolio of integrated ATCA platforms for next-generation wireless infrastructure, Trillium protocol software, and emerging professional services practice. The transaction received approval by the boards of both companies and is expected to close by the end of June 2011, when Continuous Computing will become a wholly-owned subsidiary of RadiSys.
VDC sees the RadiSys acquisition of Continuous Computing as having several compelling strategic benefits, including:
- The acquisition has the potential to drive an integrated company-wide expansion into the higher growth LTE, Femto / Small Cell Wireless and DPI markets with high-performance ATCA platforms and Trillium software.
- The acquisition has the potential to offer newly-created size and scale benefits to a complementary customer base that increasingly seeks best-in-breed solutions that are developed and supported by a cohesive, global team.
- The acquisition also has the potential to offer research and development synergies that can help accelerate a leadership position in standards-based advanced infrastructure platforms in selected next-generation communications markets.
With most acquisitions, however, the long term success (or failure) of any deal is often determined several quarters after it is originally announced. It is only 12-16 months after the acquisition announcement when the promised product, service, and cultural synergies can actually be measured with any degree of accuracy.