Thursday June 4, 07:51 PM
Intel buying Wind River Systems for $884 mln
WASHINGTON (AFP) - Intel (NASDAQ: INTC - news) said Thursday that it has agreed to buy software maker Wind River Systems (NASDAQ: WIND - news) for 884 million dollars in a bid by the US semiconductor giant to get its chips into more devices.
The Santa Clara, California-based Intel said Wind River's board of directors had unanimously approved an agreement under which it will acquire all outstanding Wind River common stock for 11.50 dollars per share.
Intel, in a statement, said its takeover of Wind River is part of its strategy to grow beyond its traditional personal computer and server markets and into mobile handheld devices and other systems.
"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," Intel vice president Renee James said.
"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."
"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," said Wind River chairman, president and chief executive Ken Klein.
Intel said the transaction is expected to close later this year subject to regulatory approval.
The Alameda, California-based Wind River, founded in 1981, has more than 1,600 employees and reported annual revenue of 359.7 million dollars in its last fiscal year.
Intel shares were trading 1.07 percent higher on Wall Street at 16.11 dollars while Wind River was up 43.88 percent at 11.51 dollars.
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