Intel Enters Talks For $10 Billion Acquisition Of FPGA Configurable Chip Manufacturer Altera

Intel is reportedly attempting to negotiate a deal to acquire Altera, an American company that designs and manufacturers FPGAs, or field-programmable gate arrays. The figure that's out there is $10 billion, and if it happens, it would be Intel's largest acquisition ever. It would also help Intel expand its presence in other markets

Altera's chips are often found in cellphone towers, along with military and industrial applications. These are all areas where Intel could make a ton of money, which also buys the company insurance against a changing landscape that's see the personal computer market lose some of its luster over the past several years.

Altera

Case in point, Intel this month reduced its first-quarter revenue forecast by nearly $1 billion to $12.8 billion, plus or minus $300 million, due to the small businesses delaying computer upgrades. Even with Microsoft ending support for Windows XP, businesses have been slow to purchase new systems, some of them opting to pay a few for continued XP support.

Intel and Altera are no strangers to each other. They've already partnered up on more than one occasion. One of those times was in 2013 when the two inked a deal for Intel to manufacturer chips for Alerta based on its designs. The two also worked together on an Xeon processor with an integrated FPGA last year.

Talks have sparked plenty of excitement among investors. Following word of the potential deal, Alera's stock skyrocketed by more than 28 percent, while Intel's share price is up more than 6 percent.

Via:  Reuters
Show comments blog comments powered by Disqus