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

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.

Pages: Page 1, Page 2

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.