Intel is to expand its capabilities beyond the PC industry to support embedded systems and mobile devices as a result of its acquisition today of Wind River for US$884m.
The company entered into a definitive agreement to buy Wind River, a leading software vendor in embedded devices, for US$11.50 per share.
During its fiscal year end in January, Wind River had revenues of US$360m and employed more than 1,600 people.
"This acquisition will bring us complementary, market-leading software assets and an incredibly talented group of people to help us continue to grow our embedded systems and mobile device capabilities," said Renee James (pictured), Intel vice-president and general manager of the company’s Software and Services Group.
"Wind River has thousands of customers in a wide range of markets, and now both companies will be better positioned to meet growth opportunities in these areas."
Wind River will now become a wholly owned subsidiary of Intel, but will carry on servicing its customers in a number of markets.
The acquisition will make Intel an even bigger player in the consumer electronics business, as well as aerospace, defence, energy and networking equipment.
"Our combination of strengths will be of great benefit to Wind River’s existing and future customers," said Ken Klein, Wind River chairman, president and CEO.
"As a wholly owned subsidiary, Wind River will more tightly align its software expertise to Intel’s platforms to speed the pace of progress and software innovation. We remain committed to continuing to provide leading solutions across multiple hardware architectures and delivering the same world-class support to which our customers have grown accustomed."
The acquisition will deliver to Intel robust software capabilities in embedded systems and mobile devices, both important growth areas for the company.
Embedded systems and mobile devices include smartphones, mobile internet devices, other consumer electronics (CE) devices, in-car ‘info-tainment’ systems and other automotive areas, networking equipment, aerospace and defense, energy and thousands of other devices.
According to Intel, the multibillion dollar market opportunity is devices and systems increasingly becoming connected and more intelligent, requiring supporting applications and services, as well as full internet functionality.
The board of directors of Wind River has unanimously approved the transaction and the deal is expected to close this summer, subject to US Government approval.
By John Kennedy
Pictured: Renee James, Intel vice-president and general manager of the company’s Software and Services Group