Radisys buys Texas Micro for $115 million

Radisys Corp. (Nasdaq: RSYS) agreed on Monday to buy Texas Micro Inc. (Nasdaq: TEXM) for $115 million in stock, or $8 a share. Texas Micro shares rose 1 3/8 to 6 1/4.

The deal is expected to start adding to earnings next year from the creation of a company with a combined $200 million in sales.

With the acquisition, the embedded technology provider can sell Texas Micro's telecommunications equipment. Radisys makes custom-designed systems that go inside such systems as in ATMs and bar code scanners.

Texas Micro, which generated $70.9 million in sales last year, makes open computing systems for telco and other applications.

The deal is expected to close within 90 days. The acquisition will be accounted as a pooling of interests, so Radisys can write off the cost of the acquisition all at once, rather than over time, diluting earnings.