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July 27, 2006
HILLSBORO, Ore. -- RadiSys Corporation (NASDAQ:RSYS) , a leading global provider of advanced embedded systems, today announced that it has entered into a definitive agreement to acquire privately-held Convedia Corporation, the global leader in IP media processing technologies and IP Media Server products. Convedia's platform products are at the heart of VoIP ("Voice-over-Internet Protocol") networks and emerging IMS ("IP Multimedia Subsystem") deployments, enabling telecommunication service providers to deliver a broad range of value-added multimedia services to their residential and business customers.
The acquisition of Convedia will benefit both companies' customers by making available a broader set of technologies and solutions delivered by an expanded team with greater scale and breadth to fully support customers' product realization initiatives. It will expand global reach and ability to service and support customer needs on a worldwide basis. The combination will facilitate RadiSys' penetration of the high growth VoIP equipment and IMS infrastructure markets as well as accelerate RadiSys' strategy to provide turnkey networking platforms. Convedia has deployed their products with more than 200 customers around the globe, including 25 of the top 50 global telecommunication service providers, and many Fortune 500 and enterprise customers. Convedia's full family of media servers will continue to be developed and enhanced under the RadiSys corporate brand. In addition, the two companies will leverage Convedia's eXMP (eXtended Media Processing(TM)), software technology to operate on RadiSys' market leading ATCA platforms to further expand the market opportunities of the combined entity.
As the market share leader in the deployment of media servers worldwide, Convedia's customer traction and revenues have been growing rapidly. For the quarter ended June 30, 2006, Convedia achieved annual run-rate revenues of around $20 million. RadiSys currently projects that this business, when combined with RadiSys, will grow to be a meaningful portion of total corporate revenues over the next several years.
"We are very excited about bringing the highly talented Convedia team into RadiSys. In addition to meaningfully expanding our platform capabilities, Convedia complements our product portfolio, our technology and our strategic direction extremely well," said Scott Grout, RadiSys President and CEO. "We believe that IMS/VoIP is an important and growing market and that Convedia's market leading products and strong customer relationships, together with RadiSys' ATCA leadership, creates a broader and more compelling portfolio of solutions for our customers across a larger addressable market."
Radisys Corp. (Nasdaq: RSYS)
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