Wind River to buy Rapid Logic

Wind River Systems Inc. (Nasdaq: WIND) said Monday it will buy Rapid Logic Inc., a provider of advanced device management technologies for networking equipment and other intelligent devices.

Wind River provides software and services for smart devices.

The acquisition enables Wind River to offer a wider range of networking technologies to developers of telecommunications equipment, such as Ethernet switches, IP routers, access concentrators, optical switches, and xDSL systems.

Wind River will acquire Rapid Logic for a total of 1.43 million shares and the deal will be accounted for as a purchase transaction. At Friday's closing price of 41.25, the deal is worth about $58.27 million. The transaction is expected to be accretive to earnings in the next fiscal year.

The majority of Rapid Logic's staff will be incorporated into Wind River's networks business unit. The deal is expected to close in the current third quarter of 2001.