Intel Buys Wind River: Bolsters Embedded Software Strategy

Seekinga Alpha ^ | June 04, 2009 | Larry Dignan (ZDNET)

[Ernest_at_the_Beach]

Intel (INTC) said Thursday that it would acquire Wind River (WIND), which makes software for embedded devices, in a deal valued at $884 million. With the move Intel is making a move to diversify into software and away from its dependence on the PC and server markets.

The chip giant said in a statement that it will pay $11.50 a share in cash for Wind River, which closed at $8 on Wednesday.

The purchase is interesting on a few fronts:

• Wind River bolsters Intel’s embedded software strategy;
• The purchase indicates that Intel thinks its future growth is in embedded devices such as smartphones, in-car systems and mobile Internet devices;
• And “Intel everywhere” is going to include software that runs behind the scenes to connect devices.
• With Wind River, Intel will have customers in the aerospace, industrial, networking equipment and consumer electronics verticals.

Wind River has about 1,600 employees and annual sales of $359.7 million. The company’s operating system, VxWorks, goes with middleware and design tools used for embedded devices. Wind River counts BMW, Boeing (BA), NASA, Northrop Grumman (NOC), Sony (SNE) and others as customers.

Those industrial strength customers will give Intel new markets to target. Wind River will also give Intel a broader competitive set. Notably, Intel will now compete with Microsoft (MSFT). From Wind River’s annual report:

[Ernest_at_the_Beach]

Another interesting piece ...of the coming events.

[ShadowAce]

FYI for the list--I will be incommunicado until Sunday evening at the earliest, probably Monday AM. I will not have access to a computer or the list until then.

Try not to get too worked up over your withdrawal. :)

[Ernest_at_the_Beach]

Related thread:

Intel Ultra-Thin Mobile Platform Preview

[ml/nj]

The purchase indicates that Intel thinks its future growth is in embedded devices

Sure hope they are right! This is what I do. The interesting thing is that Intel started in embedded systems. It's just that IBM embedded one of the Intel processors in their IBM PC, and they sort of got distracted.

ML/NJ

[Ernest_at_the_Beach]

Some distraction....LOL!

[Ernest_at_the_Beach]

Some distraction....LOL!

[ml/nj]

What I said is true, you know.

I have worked on several Intel based embedded systems after the advent of the PC, but mostly it has been TI DSPs of late.

ML/NJ

[fuzzylogic]

I work for WR, been an interesting day. We’ll see how this pans out.

[killermosquito]

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