Intel is flogging its industrial Internet of Things software provider Wind River to private equity firm TPG Capital.
Wind River said the transaction would result in it becoming independent. Financial terms of the agreement were not disclosed, and the deal is expected to close in the second quarter.
It is a little odd for Intel to dump Wind River which has been a player in the industrial IoT market and a strategic priority for Chipzilla.
However, Tom Lantzsch, senior vice president and general manager of Intel’s IoT group, said the sale of Wind River is “designed to sharpen our focus on growth opportunities that align to Intel’s data-centric strategy”. Words, words, words.
“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. We expect this transition will be seamless for our mutual customers and partners.”
An Intel spokeswoman claimed the sale of Wind River doesn’t run counter to the company’s strategic focus on IoT, adding that the company “will continue to be an important industry partner”.
Wind River is part of Intel’s Internet of Things Group, whose annual revenue grew 20 percent to $3.2 billion last year, but the subsidiary has been a small percentage of that business group, according to a source close to Intel. The company declined to break out Wind River’s sales but said it is profitable.
Chipzilla acquired Wind River in 2009 as part of its effort to grow beyond the PC and server markets. The business, which had been operating somewhat like an independent subsidiary, was then fully integrated within Intel in 2017 as part of an effort to better align Wind River with other Intel groups.
