Aptiv’s Wind River deal slashed to $3.5bn

Aptiv’s Wind River deal slashed to $3.5bn

Business news |
By Nick Flaherty

Aptiv has completed the acquisition of Wind River for a reduced price of $3.5bn and plans to show the first result of the deal at Consumer Electronics Show next week.

The deal, previously valued at $4.3bn, is part of Aptiv’s transition from a European automotive Tier One supplier to one of mission-critical infrastructure that includes investment in the software technologies developed by TTTech Auto in Austria.

Aptiv and owner TPG agreed the amended purchase price as changes in Wind River’s current operating structure required for regulatory approval meant the $800m hit.

Aptiv is integrating the Wind River Studio cloud-native software platform into Aptiv’s Smart Vehicle Architecture for software-defined vehicle throughout its complete lifecycle. The initial release of the integrated end-to-end solution will be showcased at CES 2023.

Wind River software, mostly the VxWorks real time operating system,  enables the secure development, deployment, operations and servicing of mission-critical intelligent systems. The company’s technology is in over two billion edge devices across more than 1,700 customers in high-value industries, including aerospace and defense, telecommunications, industrial, medical and automotive.

The company was bought by Intel in 2009 for $884m and sold to private equity firm TPG in 2018 for an undisclosed sum. The company had revenues of $400m in 2019, barely up from the $359m it last reported as an independent company in 2009.

“Across multiple industries, mission-critical applications are undergoing a digital transformation as devices become smarter and generate more data, creating a need for more intelligence at the edge and edge-to-cloud software solutions to unlock new business models,” said Kevin Clark, Aptiv’s chairman and chief executive officer.

“The automotive industry in particular continues to be transformed by the accelerated shift to software-defined vehicles,” he said.

“Empowering our customers to capitalize on this transition requires not only a next-generation hardware architecture, but also a cloud-native software architecture and an edge-to-cloud DevOps platform that speeds software development, streamlines deployment to vehicles and enables lifecycle management.”


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