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Intel To Acquire Altera For $54 Per Share

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Intel To Acquire Altera For $54 Per Share
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Intel Corporation (NASDAQ: INTC) on Monday announced it has entered into a definitive agreement to acquire Altera Corporation (NASDAQ: ALTR) for $54 per share, valuing the entire transaction at around $16.7 billion.

According to a press release, Intel stated that the acquisition will improve its leading-edge products and manufacturing process with Altera's leading field-programmable gate array (FPGA) technology. The combined entity is expected to enable new classes of products that meet customer needs in the data center and Internet of Things (IoT) market segments.

"Intel's growth strategy is to expand our core assets into profitable, complementary market segments," said Brian Krzanich, CEO of Intel in the press release. "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. Whether to enable new growth in the network, large cloud data centers or IoT segments, our customers expect better performance at lower costs. This is the promise of Moore's Law and it's the innovation enabled by Intel and Altera joining forces. We look forward to working with the talented team at Altera to deliver this value to our customers and stockholders."

"Given our close partnership, we've seen firsthand the many benefits of our relationship with Intel—the world's largest semiconductor company and a proven technology leader, and look forward to the many opportunities we will have together," John Daane, President, CEO and Chairman of Altera also said in the press release. "We believe that as part of Intel we will be able to develop innovative FPGAs and system-on-chips for our customers in all market segments. Together, we expect to drive meaningful value for our customers, partners and employees around the world. This is an exciting transaction that provides immediate and significant value to our stockholders. We look forward to working closely with the Intel team to ensure a smooth transition and complete the transaction as quickly as possible."

As part of the agreement, Altera will become an Intel business. The transaction is expected to be accretive to Intel's non-GAAP earnings per share and free cash flow in the first year after close. The company will fund the acquisition with a combination of cash from its balance sheet and debt.

The deal has already been unanimously approved by the Boards of Directors of both companies but still remains subject to certain regulatory approval and customary closing conditions, including the approval of Altera's stockholders.

Intel expects the transaction to close within six to nine months.

Posted-In: Acquisitions altera Brian Krzanich Field Programmable Gate Array FPGA Technology IntelNews M&A Best of Benzinga

 

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