Intel could acquire Altera in its biggest acquisition ever
Tech giant Intel is in advanced talks to acquire processing chip maker Altera. Altera is a flexible programmable gate arrays (FPGAs) company and will help Intel in consolidating its microprocessor, custom chip and FPGAs units. Altera has a valuation of $ 13 billion.The deal is estimated to be worth over $10 billion and will be the single largest acquisition by Intel ever
According to industry analysts it makes sense for Intel to acquire Altera for two reasons. Firstly, FPGAs are extremely hard to program and Altera is an Industry leader. Secondly, It will help Intel with heterogeneous processing and Digital signal Processing especially in a time when its competitors like Nvidia and AMD have already signalled their interest in DSP
An acquisition will also help Intel in solidifying its manufacturing base and though Alternet does not manufacture chips itself, it will certainly help in keeping the stocks of Intel full.
Altera also has a higher revenue growth compared to Intel and an acquisition should help Intel’s stocks. According to Roger Kay, an analyst, the acquisition will be a big victory for the tech giant.
Stock market has responded well to the news and Intel’s shares were trading 6.4% up at $32 while Alter’s were up 28% at $44.39.