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MontaVista Linux acquired by Cavium for $50 million

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From the 'Embedded Linux' files:

MontaVista Software, the pioneer of the modern embedded Linux market is set to be acquired by Cavium Networks in a deal valued at $50 million.

The deal which was just announced, includes $34 million in Cavium Networks (NASDAQ: CAVM) common stock and $16 million in cash. The deal is expected to close in December 2009.

With this deal, the two major embedded Linux vendors, Wind River and now MontaVista will be owned by semiconductor vendors. Wind River was acquired by Intel for $884 million earlier this year.

From a personal viewpoint, the trend of semi-conductor vendors owning the embedded Linux market worries me a great deal.

MontaVista this year made a big splash about supporting multiple market vertical and chips with its MontaVista 6 release. Will MontaVista now become a Cavium-only vendor?

Likely not, just like Wind River is not an Intel specific vendor. But still, it makes you wonder.

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