Intel to Acquire Wind River Systems for Approximately $884 Million

In a bid to grow its processor and software presence outside the traditional PC and server market segments and into embedded systems and mobile handheld devices, Intel agreed to acquire Wind River Systems, a leading supplier of software for embedded processors, for $11.50 per share in cash, or approximately $884 million in the aggregate. Wind River's main products include its VxWorks, a 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.


Wind River will become a wholly owned subsidiary of Intel and continue with its current business model of supplying software for a range of processors and applications. However, the acquisition is expected to boost Wind River's Intel-architecture focused sales as it gains access to the company's technology investments, brand, employees and global sales force.


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.


Intel said the multi-billion dollar embedded market opportunity is increasingly becoming connected and more intelligent, requiring supporting applications and services as well as full Internet functionality.


"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, 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."


"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."http://www.windriver.com
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