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Submitted by on 1, June 4, 2009 – 7:05 amNo Comment

Updated 12:46 p.m. Thursday, June 4

Just got word that chipmaking giant Intel is going to acquire local tech firm Wind River Systems Inc. for $884 million.

Under the deal, Intel will acquire all of Wind River’s outstanding common stock for $11.50 a share. The Alameda-based company, which makes embedded devices (that’s software that sits on the chips folks like Intel make), will become a wholly owned subsidiary of Intel.

Wind River spokesman Bryan Thomas said there are no plans to move the company out of Alameda. Per Thomas:

There will be minimal impact to our business functions and organization structure since we’ll be a wholly owned subsidiary of Intel. We are – and will remain – Wind River based in Alameda. There are currently no plans to move or close any Wind River offices, including headquarters in Alameda.

From Intel’s press release:

“This acquisition will bring us complementary, market-leading software assets and an incredibly talented group of people to help us continue to grow our embedded systems and mobile device capabilities,” said Renee James, Intel vice president and general manager of the company’s Software and Services Group. “Wind River has thousands of customers in a wide range of markets, and now both companies will be better positioned to meet growth opportunities in these areas.”

“Our combination of strengths will be of great benefit to Wind River’s existing and future customers,” said Ken Klein, Wind River Chairman, president and CEO. “As a wholly owned subsidiary, Wind River will more tightly align its software expertise to Intel’s platforms to speed the pace of progress and software innovation. We remain committed to continuing to provide leading solutions across multiple hardware architectures and delivering the same world-class support to which our customers have grown accustomed.”

Founded in 1981, the company has more than 1,600 employees worldwide. Its revenues for last year were just shy of $360 million.

Intel’s stock was up slightly, to $16.10, on the news; Wind River’s rise to $11.54 represents a gain of more than 44 percent.

For the more technically inclined, here’s a rundown from a trade paper I just got.

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