RadiSys Corp. Completes Acquisition of IBM's Open Computing Platform Assets

RadiSys Corp. has successfully completed its acquisition of assets from International Business Machines (IBM) Corporation, specifically the Open Computing Platform (OCP) operation, for $13.9 million in cash. The assets comprise intellectual property, goodwill, and other related intangibles, as well as inventory, furniture, and fixtures. This strategic move positions RadiSys as a leading designer and manufacturer of embedded computing solutions for OEMs in the telecommunications, automation, and other industries.

Key Takeaways:

• RadiSys purchased the OCP operation for $13.9 million in cash, with the possibility of additional payments tied to future OCP revenues in March 2001, 2002, and 2003.
• The total consideration will not exceed $30 million.
• Sales of OCP products generated approximately $45-50 million in revenue during 1999.
• RadiSys designs and manufactures embedded subsystems used in various electronics systems, including telecommunications equipment, medical devices, and robotics applications.
• The company's focus on Intel-based technology and "perfect fit" product development strategy has resulted in a highly differentiated market position.
• The acquisition will enhance RadiSys' offerings in the embedded computing market and positions the company for future growth.

Statistics:

• $13.9 million: Purchase price of the OCP operation
• $30 million: Maximum total consideration
• $45-50 million: OCP product revenue generated in 1999
• 1999: Year in which OCP product sales generated revenue
• $13 million: Goodwill associated with intellectual property
• $900 thousand: Approximate value of inventory, furniture, and fixtures

Sources:

• Business Wire, "RadiSys Corp. Completes Transaction with IBM Corporation," December 29, 1999
• IBM Corporation website, "Open Computing Platform",
• RadiSys Corporation website, investor.relations@radisys.com, and 503/615-RSYS