Aptiv, an electric vehicle parts supplier, is acquiring Wind River from TPG Capital for $4.3 billion (£3.14bn) in cash.
Wind River builds software for edge networks and is currently used on more than two billion edge devices by 1,700 global customers. It generated $400 million (£292m) in revenue in 2021.
Its software allows for the secure development, deployment, and servicing of mission-critical intelligent systems across the aerospace, telecommunications, and automotive industries.
Kevin Clark, president and chief executive officer of Aptiv, said: “The automotive industry is undergoing its largest transformation in over a century as connected, software-defined vehicles increasingly become critical elements of the broader intelligent ecosystem.
“With Aptiv and Wind River’s synergistic technologies and decades of experience delivering safety-critical systems, we will accelerate this journey to a software-defined future of the automotive industry. In addition, we are committed to further strengthening Wind River’s competitive position in the multiple industries it serves.”
The acquisition gives Aptiv, which has 180,000 employees, access to Wind River’s telecommunications customers such as Ericsson, T-Systems, Verizon, and Vodafone.
Aptiv plans to combine Wind River Studio’s services with Aptiv’s SVA platform to develop new automotive software. Kevin Dallas, Wind River’s president and CEO, will continue to lead the company as a stand-alone business within Aptiv.
Dallas said: “Wind River has established itself as a worldwide leader in cloud-native, intelligent edge software that delivers the highest levels of security, safety, reliability and performance. Combining Wind River’s industry-leading software, customer base and talent with Aptiv’s complementary technologies, global resources and scale will realize our vision of the new machine economy.”
Aptiv says it will finance the transaction through a combination of cash and debt, and the acquisition is expected to close by mid-year 2022.
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