Intel is buying Altera for $16.7 billion

It’s official: Intel is buying Altera for $US54 a share.

The deal between the companies is worth $US16.7 billion.

Reports over the weekend indicated that the two companies were near the end of a deal that was likely to be announced Monday.

In a statement Monday, Intel CEO Brian Krzanich said: “Intel’s growth strategy is to expand our core assets into profitable, complementary market segments.” With this acquisition, we will harness the power of Moore’s Law to make the next generation of solutions not just better, but able to do more. Whether to enable new growth in the network, large cloud data centres or IoT segments, our customers expect better performance at lower costs.”

Altera shares were up as much as 4% in premarket trading after the news, Intel was higher but little changed.

More to come …

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