Intel to buy development and testing software maker Wind River Systems for $884 million

Intel to buy Wind River Systems for $884M

SANTA CLARA, Calif. — Chip maker Intel plans to buy testing and development software maker Wind River Systems for $884 million.

Santa Clara, Calif.-based Intel says it will acquire all outstanding Wind River common shares for $11.50 each, which represents a premium of 44 percent over Wind River’s Wednesday closing price of $8.

Alameda, Calif.-based Wind River’s software helps companies develop and test software for devices like rear-seat entertainment systems in cars and avionics in defense aircraft. The company was founded in 1981 and has over 1,600 employees.

Intel Corp. said the acquisition will help it expand its processor and software offerings for embedded systems and mobile devices.

The deal is expected to close this summer.