Intel to embed Wind River

Jake Widman
Friday, 05 June 2009 02:06

IT Industry - Strategy

Intel announced that it has a "definitive agreement" to acquire Wind River Systems in order to help the chipmaker grow beyond its traditional markets.

Wind River is a leading provider of "device software," i.e. software for embedded systems.

Intel sees embedded systems and mobile devices as a route to continued expansion beyond its familiar PC and server markets.

These devices include, according to the announcement, "smart phones, mobile Internet devices, other consumer electronics devices, in-car 'info-tainment' systems and other automotive areas, networking equipment, aerospace and defense, energy and thousands of other devices."

"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," according to Renee James, Intel vice president and general manager of the company's Software and Services Group.

Wind River president, CEO, and chairman Ken Klein said, "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."

The deal is worth US$884 million, or $11.50 per share of outstanding Wind River common stock. Wind River's board of directors has approved the transaction, which is expected to be completed this summer.