Intel announced it will acquire the software optimization firm Wind River for $884 million as the chip maker looks to gain a greater foothold in embedded wireless technology and mobile devices.
The deal values Wind River's stock at $11.50 per share, a 44 percent premium over the company's Wednesday closing stock price. Wind River specializes in helping companies manage and develop software, especially for embedded systems and wireless products. The two companies previously worked together to develop an open, extensible, Moblin-based Linux platform for mobile Internet devices.
Wind River's board of directors unanimously approved the deal, which is expected to close this summer, subject to certain regulatory approvals. Intel's stock was up slightly following the announcement to around $16 per share.
Intel noted that embedded systems and mobile devices are important growth areas to the company as it seeks to move beyond its traditional role as the world's leading chipmaker. "This multi-billion dollar market opportunity is increasingly becoming connected and more intelligent, requiring supporting applications and services as well as full Internet functionality," Intel said in a statement.
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