I doubt that he went in search of the Blue Wizards, and I am also quite sure that he did not aid Saruman (willingly, that is). Perhaps he had something to do with Gandalf's escape. I believe that Radagast probably went on a ship (perhaps one of the last to set sail) into the West. While it is true that he wasn't true to his quest as a Wizard, he also did not utterly forsake the people of Middle Earth nor did he do any harm to them. Thus, being a Maiar, I think he was granted permission to return to the Uttermost West (whether he actually did sail into the West is a subject open to debate).
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...where the instrument of intelligence is added to brute power and evil will, mankind is powerless in its own defence.
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