Intel completes $884m Wind River buy

Intel is diversifying from its traditional PC and server markets

Intel has completed its $884m (£541m) purchase of embedded software maker Wind River in a deal that will help Intel with its promise to diversify beyond the traditional server and PC markets.

The deal was announced on 4 June and will see Wind River become a wholly owned subsidiary of Intel, developing commercial-grade software platforms optimised for mobile and embedded customers.

"The acquisition will deliver to Intel robust software capabilities in embedded systems and mobile devices, both important growth areas for the company," said Renee James, vice president and general manager of Intel's Software and Services Group.

"This multi-billion-dollar market segment is increasingly becoming connected and more intelligent, requiring supporting applications and services as well as full internet functionality."

The acquisition will also give Wind River access to Intel's technology investments, brand, employees and global salesforce, helping to boost its Intel architecture focused sales, said the firm.

Intel explained that the areas for Wind River software include smartphones, mobile internet devices, other consumer electronics devices, in-car 'info-tainment' systems and other automotive areas, networking equipment, aerospace and defence, energy and "thousands of other devices".

There was more good news for Intel this week as new figures from analyst Jon Peddie Research predicted that 2010 will see a resurgence in demand for graphics chip shipments.

The firm said that the annual percentage growth for the market was 11.1 per cent in 2007, 6.1 per cent in 2008 and -12 per cent in 2009, but will jump back up to 21.5 per cent in 2010.