Intel to Acquire Wind River for $884M

Summary: Intel announced its plan to acquire software maker Wind River Systems Inc that will allow the chipmaker company to expand its market by providing software to smartphones and other Internet-enabled devices in line with its new strategy to tap the lucrative industry of gadgets with features almost the same as a computer.

Chipmaker giant Intel Corp said on Thursday it will acquire software maker Wind River Systems Inc for $884 million in its ambitious plan to expand its business beyond the hardware market.

In a statement, Intel said the takeover bid will allow the company to expand its market to smartphones and other Internet-enabled gadgets in line with its new strategy to tap the lucrative industry of devices with features almost the same as a computer.

According to previous reports, the computer industry has posted slumping sales due to weak economy. But despite this trend, studies show that netbook, which is the cheaper version of laptop, has posted sales growth boosted by the growing demand for affordable Internet-enabled mobile devices.

With the increase in netbook sales, Intel’s Atom processor which is widely-used in this mobile computer, has drastically increased despite global recession which hurt most electronic and technology companies.
 

According to experts, one way to boost sales is to diversify services and products, which Intel has realized with its plan to acquire another software giant which developed some common technologies used by HP and Apple Inc.

Intel said the takeover bid is expected to be finalized this summer.