Intel has entered into a definitive agreement to acquire Wind River Systems, which makes software for embedded devices. The acquisition is part of Intel's strategy to grow its processor and software presence outside of traditional PC and server markets into embedded and mobile devices.
Intel will acquire all outstanding Wind River common stock for $11.50 per share in cash, or approximately $884-million. Wind River will become a wholly-owned subsidiary of Intel and continue with its current business model.
"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," says Renee James, Intel vice-president and GM 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."
Ken Klein, Wind River chairman, president and CEO, adds: "Our combination of strengths will be of great benefit to Wind River's existing and future customers.
"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 smart phones, 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. This multi-billion dollar market opportunity is increasingly becoming connected and more intelligent, requiring supporting applications and services as well as full Internet functionality.
Wind River develops operating systems, middleware and software design tools for a variety of embedded computing systems. Its main products include VxWorks, the market-leading proprietary and multicore-ready real-time operating system, and commercial-grade Linux software platforms.
The company also provides design services and software expertise, including custom-built solutions, development tools and device testing products.
Its customers include Alcatel-Lucent, BMW, Boeing, Bombardier Transportation, Mitsubishi, Motorola, NASA, Sony, Verizon and others.