Aptiv PLC has agreed to acquire Wind River from TPG Capital, the private equity arm of asset management firm TPG, for $4.3 billion in cash. The acquisition allows Aptiv to take advantage of the large software-defined mobility opportunity and expand into multiple high-value industries with Wind River’s team and intelligent systems software platform.

Used on over two billion edge devices across more than 1700 customers globally, Wind River’s software enables the secure development, deployment, operations, and servicing of intelligent systems. The company generated about $400 million in revenues in 2021. Its edge-to-cloud software portfolio spans the aerospace and defense, telecommunications, industrial, and automotive markets. Anchored by Wind River Studio, a cloud-native intelligent systems software platform that enables product lifecycle management for edge-to-cloud use cases.

“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,” added Clark. “In addition, we are committed to further strengthening Wind River’s competitive position in the multiple industries it serves.”

According to Aptiv, 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.

“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,” said Kevin Dallas, President and Chief Executive Officer of Wind River. “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.”

Aptiv will combine Wind River Studio offering with its complementary SVA (Smart Vehicle Architecture) 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 operate as a stand-alone business within Aptiv as part of the Advanced Safety & User Experience segment.