Cavium Networks has agreed to acquire MontaVista Software for $50m, in a deal which confirms the growing importance of Linux software support for processor suppliers.
Just nine months after Intel acquired Wind River for similar strategic reasons, Linux and its growing importance in the embedded processor market seems to have been the trigger for network processor firm Cavium's move.
See blog: Linux lies at the heart of another Silicon Valley takeover
“Embedded Linux is poised for rapid growth,” said Rusty Harris, President and CEO, MontaVista Software. “By becoming part of Cavium Networks, MontaVista can confidently continue to offer industry leading commercial grade embedded Linux, support and services to our customers and partners.”
After the acquisition, MontaVista Software will run as a separate operating unit and will retain the MontaVista brand name.
Cavium Networks also said it intends to continue the MontaVista business model and support embedded Linux on multiple architectures from multiple processor vendors.
Increasingly Linux is becoming the operating system of choice for a range of embedded networking, wireless, consumer electronics and mobile devices.
“Software is becoming an increasingly important part of the total solution with the rapidly increasing adoption of multi-core processors,” said Syed Ali, President and CEO of Cavium Networks.
“This acquisition will complement Cavium’s market leading processor portfolio with world-class software expertise and will enable us to deliver highly compelling and differentiated solutions to the market,” said Ali.
The deal is expected to close in December 2009.
See: Wind River to be software company inside Intel, says Ken Klein