Billion deal: Intel buys FPGA giant Altera

Intel

Soon with FPGAs from Intel

Initially failed, but now it: for 16.7 billion US dollars in cash Intel buys the number two in the FPGA market, Altera.

Intel and Altera Corporation have now agreed yet: For 16.7 billion US dollars in cash - $ 54 per share - should the deal go across the stage. About a month ago the negotiations were still failed with Altera, even then Intel is said to have commanded dollars already 54 per outstanding share. Both boards of directors have now already agreed unanimously. This becomes the most expensive by far Shopping, Intel has ever taken place, more than twice as expensive as five years ago, considered by many to be completely overpriced acquisition of McAfee.

With the acquisition of the number two in field-programmable gate arrays (FPGAs) behind Xilinx Intel now goes into a completely new market. Since the markets of companies thus overlap almost never is to expect a speedy approval of US regulators FTC and the Justice Department.

Altera offers FPGAs and SoCs in the series Stratix, Arria and Cyclone. The Stratix 10 is already prepared in the Intel 14-nm-tri-gate process. For SoCs Altera also has ARM cores in the program for the Stratix 10 SoC as an ARM Cortex-A53, for others an ARM Cortex-A9. This offer will remain after the acquisition. "Intel plans to continue support and development for Altera's ARM-based and power management product lines" - it is said in Intel's press release.

Combined chips with Intel processors and Altera FPGAs are also soon expected. Intel recently announced the integration of FPGA / ASIC cores, the company eASICs in the Xeon line, possibly should exert a little pressure on Altera that they are not the only ones. Also has a much more expensive acquisition of Broadcom has been speculated. But this biggest deal in semiconductor history, the chipmaker Avago, who had in 2013 already purchased LSI for 6.6 billion US dollars, completed last week for 37 billion US dollars. By early 2016, the Broadcom acquisition is to be completed.

(As)