Intel's microprocessors find their way into a myriad of products from MIDs to computers and many other devices. The company is always looking to branch into new markets as it keeps growing its core computer processor business, of which it commands 80% market share.

Intel announced that it had purchased embedded software maker Wind River in an all cash transaction totaling $884 million. The purchase price breaks down to $11.50 per share for stock in Wind River. The Wind River board unanimously approved the deal and analysts say that the purchase will open the door for Intel to offer full hardware and software platforms for all sorts of devices and markets including smartphones and other mobile devices.

Once the purchase is complete, Wind River will become a part of Intel's Software and Services Group. InformationWeek reports that at first, the Wind River real-time operating systems and other development tools will allow Intel to offer hardware and software bundles for its embedded systems business.

Intel currently sells chips for embedded systems to a wide variety of markets including infotainment, medicine, storage, VOIP, and network security. Wind River's embedded software will allow Intel to offer software along with future versions of its Atom processor including the Medfield platform for smartphones.

Analyst John Spooner from Technology Business research told InformationWeek, "Combining Wind River with Intel hardware and you can deliver a whole platform for manufacturers to put some plastic around to make a device."

Intel's Renee James said in a statement, "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."