Buying software

Microprocessor maker Intel is to acquire software vendor Wind River Systems for approximately $884m.

Acquiring Wind River will allow Intel to grow its processor and software presence outside the traditional PC and server market segments into embedded systems and mobile handheld devices.

The board of directors of Wind River has unanimously approved the transaction, which is expected to close this summer, subject to certain regulatory approvals and other conditions.

Upon completion of the acquisition, Wind River will become a wholly owned subsidiary of Intel, reporting into Intel's Software and Services Group headed by Renee James.

Founded in 1981, Wind River is a publicly held company with headquarters in Alameda, California, with more than 1,600 employees and operations in more than 15 countries.

During its fiscal year ended January 31, 2009, Wind River reported annual revenues of $359.7m.

Wind River develops operating systems, middleware (software found between an OS and software application), and software design tools for a variety of embedded computing systems.