Intel has arranged to acquire programmable logic device vendor Altera for $54 per share in an all-cash transaction valued at about $16.7 billion.
The acquisition will couple Intel’s products and manufacturing process with Altera’s field-programmable gate array (FPGA) technology.
Intel said the combination is expected to enable new classes of products that meet customer needs in the data center and Internet of Things (IoT) market segments.
Intel plans to offer Altera’s FPGA products with Intel Xeon processors as highly customized, integrated products.
The companies also expect to enhance Altera’s products through design and manufacturing improvements resulting from Intel’s integrated device manufacturing model.
“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 Brian Krzanich, CEO of Intel. “Whether to enable new growth in the network, large cloud data centers or IoT segments, our customers expect better performance at lower costs.”
John Daane, president, CEO and chairman of Altera, said the company believes that as part of Intel it will be able to develop innovative FPGAs and system-on-chips for customers in all market segments.
Altera will become an Intel business unit to facilitate continuity of existing and new customer sales and support. Intel plans to continue support and development for Altera’s ARM-based and power management product lines.
Intel intends to fund the acquisition, which is expected to close within six to nine months, with a combination of cash from the balance sheet and debt.
The transaction has been unanimously approved by the Intel and Altera boards of directors and is subject to certain regulatory approvals and customary closing conditions, including the approval of Altera’s stockholders.