Chip maker Intel plans to acquire software vendor Wind River Systems for about $844m (£550m) to strengthen its software and processor presence outside the PC and server market segments into embedded systems and handheld devices.
The offer has been accepted by Wind River Systems’ board. The acquisition of the California-based firm is subject to certain regulatory approvals and other conditions specified in the definitive agreement and expected to close this summer.
Intel will acquire all outstanding Wind River common stock for $11.50 per share in cash.
The acquisition is expected to deliver to Intel software capabilities in embedded systems and mobile devices, which include smart phones, mobile internet devices, other consumer electronics (CE) devices, in-car “info-tainment” systems and other automotive areas, networking equipment, aerospace and defence, energy and other devices.
Post acquisition, Wind River will become subsidiary of Intel and is expected to continue with its current business model and develop software platforms that support multiple hardware architectures that are optimised for the embedded and mobile sectors.
Wind River develops operating systems, middleware and software design tools for embedded computing systems. Its main products include VxWorks, multicore operating system and Linux software platforms.
The company posted annual revenues of $359.7m during its fiscal year ended January 31, 2009. In October 2008, Wind River acquired South Korean-based Mizi Research, which focuses on the development of mobile application platforms based on embedded Linux, in an attempt to accelerate its mobile services presence in Asia Pacific.
