Aptiv Buys Wind River for $4.3B
January 12, 2022
singed a definitive agreement to acquire Wind River from TPG Capital, the
private equity platform of global alternative asset management firm TPG, for
$4.3 billion in cash.
Wind River is a global leader in delivering software for the intelligent edge.
Used on over two billion edge devices across more than 1,700 customers globally,
Wind River's software enables the secure development, deployment, operations and
servicing of mission-critical intelligent systems. This edge-to-cloud software
portfolio spans the aerospace and defense, telecommunications, industrial and
automotive markets and is anchored by Wind River Studio, a highly versatile,
comprehensive cloud-native intelligent systems software platform that enables
full product lifecycle management for edge-to-cloud use cases. Wind River
generated approximately $400 million in revenues in 2021.
"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," said Kevin Clark, president and
chief executive officer of Aptiv. "Fully capitalizing on this opportunity
requires comprehensive solutions that enable software to be developed faster,
deployed seamlessly and optimized throughout the vehicle lifecycle by leveraging
data-driven insights. These same needs are driving the growth of the intelligent
edge across multiple end markets. 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. We look forward to
welcoming the world class Wind River team to the Aptiv family as we continue to
develop a safer, greener and more connected world."
"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," said Kevin Dallas, president and chief executive
officer of Wind River. "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. Together
we will accelerate the digital transformation of our customers across industries
through best-in-class intelligent systems software. We look forward to working
with the Aptiv team to reach even greater heights and provide further growth
opportunities for our customers and partners."
"It has been a privilege to partner with Kevin Dallas and the management team to
transform Wind River into a leader in the intelligent systems market," said
Nehal Raj, co-managing partner, and Art Heidrich, principal at TPG Capital. "The
mission-critical industries they serve are digitally transforming at a rapid
pace, and we see significant opportunity ahead as companies look to adopt
innovative software solutions that allow them to leverage data to make better
and faster decisions. We are excited to see what Wind River and Aptiv will
acquisition allows Aptiv to execute against the large software-defined mobility
opportunity and expand into multiple high-value industries with Wind River's
world-class team and leading intelligent systems software platform. The
combination will enable multiple end-use innovations and applications,
particularly as compute and processing continue to move closer to the edge and
connected devices, including vehicles, expand in complexity and capabilities.
Aptiv will combine Wind River Studio offering with its complementary SVA™
platform and automotive expertise to extend its position in automotive software
solutions, providing automotive customers with a faster and economical path to
full vehicle software architecture. Led by Kevin Dallas, Wind River will
continue to operate as a stand-alone business within Aptiv as part of the
Advanced Safety & User Experience (AS&UX) segment.
Financing and Terms of the Transaction
Aptiv will finance the transaction through a combination of cash and debt. The
acquisition is expected to close mid-year 2022 and is subject to customary
conditions, including receipt of applicable regulatory approvals.