DOW JONES NEWSWIRES
Intel Corp. (INTC) announced plans to acquire Wind River Systems
Inc. (WIND) for $884 million as the semiconductor giant moves to
boost its presence in handheld devices.
Wind River helps companies develop and manage device software,
notably in embedded systems and wireless products. Both are key
growth targets for Intel as it continues to seek diversification
avenues beyond personal computers and servers, where it is the
market leader in providing chips.
Intel would pay $11.50 a share, a 44% premium to Wednesday's
closing price. But Wind River traded about the offer as recently as
late August.
Wind River, which is slated to release its fiscal first-quarter
results after the bell Thursday, has been reporting growth in
recent periods. But some forecast have disappointed analysts.
In October, Wind River acquired South Korean mobile
application-development firm Mizi Research Inc. - the latest move
following the company's reorganization last year to target
high-growth markets like mobile handsets, automotive infotainment,
network equipment and certain aerospace and defense segments.
Intel shares were recently down 0.7% at $15.83.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com
