SANTA CLARA, Calif. -- 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(TM) product family helps us accelerate our ATCA product strategy, broadens our customer base and expands our addressable market."

The two companies will be working together during the coming months to seamlessly transition the assets in order to continue to offer high quality service and support to all customers. A significant number of the employees associated with these product lines, including engineering, product testing/validation, operations and marketing personnel are expected to accept offers from RadiSys and transition with the product lines. Products associated with the sale include ATCA compute and packet processing blades, ATCA chassis, and Chassis Management Hardware and Software Modules, AMC module as well as cPCI blades, cPCI chassis, and other legacy systems products.

"Intel is sharpening its focus on communications and embedded market segments that are aligned with our core businesses," said Doug Davis, vice president and general manager of Intel's Embedded and Communications Group."The modular communications platform business presents an attractive market opportunity, and these products will remain an important part of the Intel ecosystem. We will collaborate closely with RadiSys, as a premier Intel Communications Alliance member, to ensure that customers have complete and competitive Intel Architecture-based solutions."

Radisys Corp. (Nasdaq: RSYS)

Intel Corp. (Nasdaq: INTC)