Oregon’s RadiSys Acquires San Diego’s Continuous Computing in Deal Valued at $120M

5/3/11Follow @bvbigelow

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Brian Wood, the company’s marketing vice-president.

Since Dagenais was named as CEO in December 2006, Continuous Computing has narrowed its focus on wireless infrastructure technologies that help to optimize traffic across mobile networks. “Continuous Computing is clearly focused on the challenges that [mobile] service providers face with mobile capacity,” Dagenais says.

While there will likely be some consolidation of duplicated functions, such as finance and business administration, Dagenais says, “This is actually going to be good for the business here,” as much of the wireless software and hardware technology development will remain in San Diego. “This site will continue to be here, and to grow,” Dagenais says.

In financial results released late today, RadiSys says the acquisition is expected to accelerate its revenue growth and “significantly increase” the company’s profitability. Continuous Computing’s gross margins were roughly 50 percent in 2010, “which is expected to result in meaningful expansion the current RadiSys margin,” according to the Portland-area company.

The companies say their combined product line should enable them to win more business in rapidly-growing communications markets, such as wireless 3G and 4G networks, mobile Long Term Evolution (LTE) technologies, femtocells, and deep packet inspection (DPI).

“Over time we expect to be able to leverage this into some very innovative and exciting new products,” said Wood of Continuous Computing.

The deal, which must be approved by the boards of both companies as well as state and federal regulators, is expected to close by the end of June.

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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