Looking to expand beyond its traditional PC and server markets, semiconductor giant Intel will acquire Wind River Systems, a maker of software for embedded devices, for $884 million in cash, Intel said Thursday.
Intel said it had signed a definitive agreement to acquire Alameda, Calif.-based Wind River and Wind River's board has approved the deal. Intel expects to complete the acquisition sometime this summer.
Wind River develops operating systems, middleware and software design tools for embedded computing systems. Its main products include VxWorks, a proprietary realtime operating system, and Linux software for embedded applications. It also provides a range of product design services and development and testing tools.
Wind River's customers include BMW, Boeing, Mitsubishi, Motorola, NASA, Sony and Verizon, among others.
The acquisition is significant for Intel because it will help the company expand sales of its technology for embedded systems and mobile devices, everything from smartphones and in-car entertainment systems to aerospace and defense systems, networking equipment, medical devices and more.
"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, in a statement.
Wind River will be run as a wholly owned subsidiary within James' organization once the acquisition is complete. The company, founded in 1981, has more than 1,600 employees and reported sales of $359.7 million for its fiscal year that ended Jan. 31, 2009.