|Some biggie mergers. The deals keep flowing.|
Is Intel about to make its biggest-ever acquisition?
by Chris Matthews
May 29, 2015, 7:55 AM EDT
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Chip giant Intel is about to get a little bit bigger.
According to a report Thursday in The New York Post, Intel INTC 1.31% is set to acquire fellow chip maker Altera Corp ALTR 3.11% for $15 billion, or $54 per share.
That’s a 15% premium over Altera’s closing price on Thursday, which came in at $46.97 per share. That’s far higher than the roughly $35 per share Altera was trading at back in March, when rumors of the deal first started to leak.
The news comes soon after Intel competitor Avago AVGO 1.99% announced a $37 billion takeover of rival chipmaker Broadcom BRCM -0.97% , a deal which was finalized on Thursday.
The main attraction of Altera for Intel, observers say, would likely be its ‘field programmable gate arrays’–integrated circuits that are designed so as to let customers or designers configure them after manufacturing. FPGAs are particularly in demand from companies who need them for data centers to run Cloud-based services.