Intel is closer to concluding a deal to
acquire the competitive processors developer Altera, reported Financial times.
According to sources of the newspaper the suggested price is $ 54 per share,
that valuated the company at over 16.7 billion Dollars. This represents a 15% premium
to the share price of Altera, before the media announce information about the deal.
The deal, which could be announced officially this week, will be the biggest in
the history of Intel and will be the next consolidation in the series of
mergers and acquisitions in the sector of computer chips.
The previous biggest deal was the acquisition of Intel developer of antivirus software
McAfee for 7.7 billion Dollars in 2011.
The consolidation between producers of semiconductors is happening against the
background of downward pressure on prices coming from the major producers of
smartphones such as Apple and Samsung. The merger should give them more confidence
in negotiations with bigger customers and allow them expansion amid slowing
growth in demand for processors.
Altera has over 3000 employees in 19 countries and this could help Intel to
diversify production and become less dependent on the sector of personal
computers. Merging can also lead to filling of excess production capacity in
the plants of Intel.
Altera's chips are used mainly in
equipment for telecom, wireless and network devices, but also for military
hardware, automotive and other industries. Altera programmable processors are
increasingly used in processing centers and data can be customized for features
such as faster execution of specific functions such as Internet search. Huawei
and Ericsson are among the biggest customers of Altera.
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