Intel (INTC) is paying a 44 percent premium in its plan to purchase software-maker Wind River Systems (WIND) for $884 million.

Chip-maker Intel will buy Wind River, which tests and develops software, in the next few months, the company said in a press release today. Intel will pay $11.50 for all outstanding Wind River common shares, which closed at $8 on Wednesday.

By acquiring Wind River, Intel adds a company that can help grow its mobile and embedded device businesses. Intel is looking to expand its reach beyond personal computers and computer servers.
"Wind River will more tightly align its software expertise to Intel's platforms," Wind River CEO Ken Klein said in the release. After the purchase, Wind River will report to Intel's software and services division.

Embedded systems and mobile devices are essentially new growth avenues for Intel, Jon C. Ogg wrote on 24/7 Wall Street. Ogg mentioned Microsoft (MSFT), IBM (IBM) and Texas Instruments (TXN) as companies that might be interested in Wind River. A bid by another company is unlikely because Wind River's board unanimously approved the transaction

Alameda, California-based Wind River was founded in 1981 and has over 1,600 employees spread over 15 countries. It reported annual revenue of $359.7 million during its fiscal year that ended Jan. 31.

Anthony Massucci is a senior writer for DailyFinance. You may follow him on Twitter at hianthony.

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