Republic of Ireland-headquartered software company Aptiv announced plans to purchase intelligent edge software provider Wind River from private equity group TPG Capital for $4.3 billion to boost its position in the automotive market.
Aptiv plans to combine the company’s cloud-based platform for operating mission-critical systems with its own smart vehicle software. Wind River president and CEO Kevin Dallas will continue to lead the company as a standalone business.
The deal will be financed through a combination of cash and debt, with Aptiv predicting a mid-year closing, subject to customary clearances.
Wind River’s software enables customers to monitor and manage cloud-based infrastructure, and to build real-time operating systems for embedded devices.
Aptiv stated the software is installed on more than 2 billion edge devices and used by more than 1,700 customers across several industries, including automotive.
TPG Capital acquired Wind River from Intel in 2018. At the time, the automotive sector was highlighted as a potential growth area. The software provider is also active in the aerospace and defence; telecommunications; and industrial sectors.
Aptiv president and CEO Kevin Clark noted his company is “committed to further strengthening Wind River’s competitive position in the multiple industries it serves”, but made it clear the focus is on the connected vehicle market.
“The automotive industry is undergoing its largest transformation in over a century”, Clark stated, arguing connected vehicles are becoming part of a “broader intelligent ecosystem”.
He highlighted the “synergistic technologies and decades of experience delivering safety-critical systems” of both companies.