Intel to buy Altera for US$16.7B, eyes IoT market

The deal had been rumored to be in the works since March

Pursuing opportunities in the Internet of Things market, Intel has sealed a deal to buy Altera in an all-cash transaction valued at about $16.7 billion, which would be Intel's largest acquisition ever.

News reports that the companies were in talks first surfaced in late March. However, those negotiations reportedly broke down in early April because Altera considered Intel's offer of $54 per share too low.

However, late last week the New York Post and other media outlets reported that talks had resumed after Altera reported disappointing financial results on April 23. Those reports were based on anonymous sources. The price of the final deal remains $54 per share.

Altera had sales of $435.5 million for the first quarter of 2015, down 6 percent compared to the year-earlier period. Net income for the quarter was also down at $94.9 million from $116.5 million.

On Monday, Intel said that by combining its chips and manufacturing processes with Altera's field-programmable gate array (FPGA) technology, it will be able to develop new products for the Internet of Things market.

Specifically, Intel plans to offer Altera's FPGA products with its Xeon processors as "highly customized, integrated products" and to improve Altera's products by applying Intel's design and manufacturing processes to them.

Altera's field-programmable gate arrays (FPGAs) can be reprogrammed to handle specific tasks and are used by companies in the medical, automotive and industrial fields.

The acquisition is expected to close within six to nine months. It has been unanimously approved by the Intel and Altera boards of directors and it's subject to certain regulatory approvals and customary closing conditions, including the approval of Altera's stockholders.

Juan Carlos Perez covers enterprise communication/collaboration suites, operating systems, browsers and general technology breaking news for The IDG News Service. Follow Juan on Twitter at @JuanCPerezIDG.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesintelhardware systemsaltera

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?