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Intel to buy Altera for $17 billion

Intel

According to a report by New York Times, the chip manufacturer Intel is all set to acquire Altera for $17 billion. The report suggests that, Intel would use Altera’s semiconductor designs in order to expand the market beyond the personal computers. After this alliance, Intel will be able to bundle its processing chips with the smaller company’s programmable chips, which are used, among other things, to speed up Web-searches.

Intel also stated that, it would offer $54 per share in cash, a 10.5 percent premium to Altera’s closing price on Friday. This is the third biggest deal of the chip manufacturing industry. The companies expect to close the deal in the coming nine months. In 2011, Intel also acquired the security software company McAfee for $7.7 billion.

Intel also said that, after the deal it will continue to support Altera’s ARM-based and power management chips. Presently, Intel deals in making makes processors and memory for PCs, servers, and mobile devices, Altera concentrates on field programmable gate arrays (FPGAs). Last month, another chipmaker, Broadcomm was acquired by Avago for $37 billion.

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Heena Gupta

A reader at heart, this girl loves to express through writing. Her ears perk up as soon as she senses any tech molecule in the air. With the ability to use and navigate typical technologies she becomes a complete tech enthusiast. This post graduate in Mass Communication lives in the world of gadgets. Fiction, history and cartoons keep her busy in the free time. Her urge to grow mixed with excellent writing skills forces us to have her as a part of our workforce.

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