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Intel spends $884m to straddle Wind River

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Intel is paying $884m for embedded software firm Wind River to pump up its efforts to push beyond its core PC markets.

The chip giant is offering $11.50 a share for the firm - its shares were changing hands yesterday for $8.

Wind River will become a subsidiary of Intel and continue selling embedded software. The idea is that it will expand Intel's market from its PC and server routes to embedded devices, car and infotainment systems, mobile internet devices and other gadgets.

The bid has been approved by Wind River's board but needs shareholder and regulator approval. It should close in the summer.

Wind River is based in Alameda, California, and employs 1,600 people. It turned over $359.7m last year. It claims to be the world leader in "device software optimisation" - for developing, running and managing software on devices.

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