ALAMEDA, Calif. Global alternative asset firm TPG in San Francisco is acquiring Wind River, developer of software for intelligent connected systems, in Alameda, California, from Intel Corp. with headquarters in Santa Clara, Calif. The transaction will free Intel to focus on data-centric growth opportunities and enable Wind River to operate as a standalone software company with a continued focus on software-based solutions for safety-critical applications across multiple industries.
“This move is designed to sharpen our focus on growth opportunities that align to Intel’s data-centric strategy,” says Tom Lantzsch, senior vice president and general manager of the Internet of Things Group at Intel. “Wind River will remain an important ecosystem partner, and we will continue to collaborate on critical software-defined infrastructure opportunities to advance an autonomous future.”
Wind River is expected to operate as an independent software business headed by President Jim Douglas and his existing executive management team and focused on delivering software-based solutions for safety-critical applications.
“We see a tremendous market opportunity in industrial software driven by the convergence of the Internet of Things (IoT), intelligent devices, and edge computing,” says Nehal Raj, partner and head of technology investing at TPG. “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.”
Wind River’s software runs the computing systems of the most important modern infrastructure, including aircraft, railway, automobiles, manufacturing plants, medical devices, and communications networks. Wind River’s products and solutions enable engineers, developers, manufacturers, and system integrators to build intelligent connected devices, sensors, gateways, and networks that unlock machine data and connect it to cloud and IT environments, officials say.
“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,” Douglas explains. “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 transaction, for which Allen & Company LLC served as financial advisor to Intel, is expected to close in the second quarter of 2018. The terms of the agreement are not being disclosed.