Aptiv, the American auto parts and technology company formerly known as Delphi, has announced its acquisition of Wind River Systems, a leading provider of embedded system and cloud software. Aptiv is purchasing the software company from TPG Capital for a substantial $4.3 billion. The purchase is intended to strengthen Aptiv’s software-based capabilities as the automotive industry shifts to electric vehicles and autonomous driving technologies. It should also benefit the company’s revenue stream, incorporating Wind River’s diverse clientele, including aerospace & defense, industrial, medical, and telecommunications companies into its existing technology portfolio. However, the addition of Wind River’s highly-skilled staff and edge-to-cloud software portfolio is the biggest boon for Aptiv, enabling the firm to deliver new products quicker and more cost-effectively.
As much of the automotive industry is pivoting into software-based technologies, Aptiv’s move signals a commitment to play a significant role in the sector’s future. Wind River has established itself as a global leader in intelligent edge software, counting Ford Motor Company, Northrop Grumman, and Verizon Communications among its clients. Founded in 1983, Wind River was owned by Intel from 2009 to 2018, when it was spun out and purchased by TPG Capital. The investment firm made its debut on the public market with an early 2022 IPO, which values TPG at $9 billion.