DOW JONES NEWSWIRES 
 

Intel Corp. (INTC) announced plans to acquire Wind River Systems Inc. (WIND) for $884 million as the semiconductor giant moves to boost its presence in handheld devices.

Wind River helps companies develop and manage device software, notably in embedded systems and wireless products. Both are key growth targets for Intel as it continues to seek diversification avenues beyond personal computers and servers, where it is the market leader in providing chips.

Intel would pay $11.50 a share, a 44% premium to Wednesday's closing price. But Wind River traded about the offer as recently as late August.

Wind River, which is slated to release its fiscal first-quarter results after the bell Thursday, has been reporting growth in recent periods. But some forecast have disappointed analysts.

In October, Wind River acquired South Korean mobile application-development firm Mizi Research Inc. - the latest move following the company's reorganization last year to target high-growth markets like mobile handsets, automotive infotainment, network equipment and certain aerospace and defense segments.

Intel shares were recently down 0.7% at $15.83.

-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136; kevin.kingsbury@dowjones.com