UPDATED 14:49 EDT / APRIL 03 2018

EMERGING TECH

Intel will sell its Wind River software business to private equity firm TPG

Intel Corp. is slimming down in an effort to free up resources for its core focus areas.

A press release sent out today revealed that the chipmaker has inked a deal to sell Wind River Systems, a subsidiary focused on developing software for embedded systems, to TPG Capital LP.

The financial terms of the acquisition were not disclosed. The sale comes about a decade after Intel originally picked up the group in an all-cash $884 million transaction.

Wind River is best known as the maker of VxWorks, a lightweight operating system employed in a variety of different sectors. The platform is used to power NASA’s Curiosity rover, networking gear, factory robots and many other types of industrial equipment. VxWorks is also used in hardware that comes into contact with consumers, such as medical devices.

Wind River sells two editions of VxWorks, namely a base version and a premium release that expands upon the core feature set with extra security and management capabilities. In addition, the group offers a Linux distribution for powering connected devices.

Demand for such software is likely considerable given the rapid growth of the “internet of things,” but Wind River’s product line apparently doesn’t align with Intel’s core strategic focus. Tom Lantzsch, senior vice president and general manager of the chipmaker’s IoT group, said in a prepared statement that “this move is designed to sharpen our focus on growth opportunities that align to Intel’s data-centric strategy.”

Lantzsch added that the chipmaker plans to keep collaborating with Wind River on projects related to software-defined infrastructure. As for Wind River, it’s set to continue operating under the current leadership team once the sale to TPG wraps up.

The private equity firm previously struck an agreement with Intel to spin off its McAfee cybersecurity division. The deal, which was announced last April, saw TPG acquire a 51 percent stake in the security company for $3.1 billion and pledge to invest an additional $1.1 billion.

Wind River President Jim Douglas said that “TPG will provide Wind River with the flexibility and financial resources to fuel our many growth opportunities as a standalone software company that enables the deployment of safe, secure, and reliable intelligent systems.” The acquisition is expected to be completed in the second quarter.

Image: Intel

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