Intel has signed an agreement to sell Wind River Systems, its embedded software unit, to investment firm TPG.
With the deal, Wind River will now be established as an independent software company to drive digital transformation. Jim Douglas, the president of Wind River, and his existing executive management team will continue to lead the company following the closure of transaction in second quarter of 2018.
Wind River is a prominent player in the industrial internet of things (IIoT). It delivers next generation software which runs the computing systems of modern infrastructures, including medical devices, aircraft, railway, automobiles, manufacturing plants, and communication networks.
The products and solutions of Wind River help developers build smart connected devices, sensors and gateways. The company is known for VxWorks – a real-time operating system, used by several industries for building connected, intelligent systems.
VxWorks is being used by NASA for Curiosity rover, networking gear, factory robots and many other industrial equipment. The VxWorks provides extra security and management capabilities, and offers Linux distribution for IoT devices.
“This acquisition will establish Wind River as a leading independent software provider uniquely positioned to advance digital transformation within critical infrastructure segments with our comprehensive edge to cloud portfolio,” said Jim Douglas, Wind River President. “At the same time, 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 other solutions of the Wind River include software defined infrastructure, Helix device cloud, and automotive systems. It is the second time that Intel has sold a business unit to TPG. In 2016, the chipmaker sold majority of its McAfee’s stake to TPG for around $4.2 billion.
“Our technology team is focused on backing strong, market-leading companies in growing industries,” said Nehal Raj, Partner and Head of Technology investing at TPG. “We see a tremendous market opportunity in industrial software driven by the convergence of the Internet of Things (IoT), intelligent devices and edge computing. As a market leader with a strong product portfolio, Wind River is well positioned to benefit from these trends. We are excited about the prospects for Wind River as an independent company, and plan to build on its strong foundation with investments in both organic and inorganic growth.”
The financial terms of the deal were not disclosed. Intel had picked up Wind River more than a decade ago for $884 million cash.