Intel Purchases Software Company for $884M
June 4, 2009 by Mark Ellis
Filed under Business
According to an announcement by Intel today, the computer giant has decided to purchase Wind River Systems, a software company, for $11.50 a share, totaling a whopping $884 million. By doing so, Intel hopes to diversify its product base by putting its chips into a wider variety of consumer electronic products.
Wind River, which serves several high profile clients, makes operating systems for electronic devices. By purchasing Wind River, Intel, which already dominates the processor market for personal computers, will be able to expand into new markets. Eventually, Intel hopes to absorb Wind River’s customer list in hopes of acquiring more chip contracts.
Intel has not undergone any major acquisitions since CEO Paul Otellini took over in 2005. Although Otellini himself has not released a statement about the acquisition, an Intel spokesman has confirmed Intel’s optimism about the potential for a much wider customer and product base due to Wind River.
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