Intel Buying Fellow Chip Maker Altera In Nearly $17B Deal
Intel is buying fellow chip maker Altera in an all-cash transaction valued at approx. $16.7 billion, USA Today reported. The deal will allow Intel to expand chips for personal computers into smart cars and other newfangled technologies.
"With this acquisition, we will harness the power of Moore's Law to make the next generation of solutions not just better, but able to do more," said Intel CEO Brian Krzanich. "Whether to enable new growth in the network, large cloud data centers or IoT segments, our customers expect better performance at lower costs."
Altera makes chips that can be configured according to the needs. The programmable chips are essentially used in data centers for cloud computing.
Chips made by Altera can also be used in clothes, and other everyday items i.e., Internet of Things (IoT).
Intel noted that it expects to pay for the acquisition with a combination of cash from its balance sheet and debt. The company, at the end of last quarter had $14 billion in cash and other short-term, liquid investments.
"The acquisition will couple Intel's leading-edge products and manufacturing process with Altera's leading field-programmable gate array (FPGA) technology," Intel said in the statement. "The combination is expected to enable new classes of products that meet customer needs in the data center and Internet of Things market segments."
