Intel Corp. has announced its intentions to snap up Wind River Systems, a firm which develops software for embedded devices, for around $884 million, as the chip giant plans to bolster up its presence in handheld devices.
In its announcement the chip maker notified that it will buy all outstanding shares for Wind Rivers Systems for $11.50 each, which shows an impressive 44 percent premium over the company's 3 June closing price of $8 per share.
The industry experts asserted that the acquisition would help Intel to have a prominent presence in the Linux space, and would assist in its efforts to develop operating system for smartphones as well as several embedded systems, such as in-car “info-tainment” systems, energy, defence and aerospace, to name a few.
After the acquisition completes during the summer, Wind River will function as a wholly owned subsidiary, and will be headed by Renee James, chief of software and services group of Intel.
Wind River's chief exec, president and chairman Ken Klein said in a statement, “Our combination of strengths will be of great benefit to Wind River’s existing and future customers. Came into existence in 1981, Wind River currently holds a staff of 1,600 employees and currently has operations in over 15 countries.
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One thing that struck us at first is the fact that Intel is buying what is essentially a software company. Windriver has a whole array of software products - many of them Linux-based - geared at making the most of embedded technology. Intel previously collaborated with Intel to market "optimised multicore solutions for embedded market".
(The Wall Street Journal)