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Intel to buy Wind River for $884m

Jonathan Skillings CNET News

Published: 04 Jun 2009 17:13 BST

Chip giant Intel is set to acquire Wind River Systems, a maker of software for embedded devices.

Intel has entered a definitive agreement to buy the company for $11.50 per share in cash, which works out to a total value of approximately $884m (£545m), Wind River said Thursday. The embedded software specialist would become a wholly owned subsidiary of Intel, reporting to the chipmaker's Software and Services Group, headed by Renee James.

The pending acquisition, Wind River said, fits into "Intel's strategy to grow its processor and software presence outside the traditional PC and server market segments, into embedded systems and mobile handheld devices".

Embedded systems can include consumer electronics devices, car-dashboard gear and networking equipment. Wind River is a member of the Open Handset Alliance, the Google-led consortium that oversees the development of the Android platform.

During its fiscal year ending in January, Wind River had revenue of $359.7m. The company has more than 1,600 employees.

The acquisition is expected to close this summer, pending regulatory approvals and other conditions.

Credit: Intel to buy Wind River for $884 million from CNET News