Altera

Altera company — one of the largest developers ASIC (programmable logic integrated circuits)

2015: Intel buys Altera for $16.7 billion

On June 1, 2015 the Intel corporation announced purchase of Altera for $16.7 billion. At the expense of this transaction which at the time of its announcement is the biggest in the history of the American processor giant it expects to strengthen the positions in the markets of servers and Internet of Things.

According to the official statement of Intel, the company will pay for Altera about $54 counting on each stock of the absorbed chipmaker. It is 11% more than the cost of securities at the time of the termination of exchange biddings on May 29, 2015 and also for 56% exceeds an indicator on March 26, 2015 — how in the press rumors about merge of Intel and Altera for the first time appeared. Since then and to the declaration of the transaction of the last quotation steadily grew, despite emergence of rumors about the termination of negotiations against the background of disagreements in a price question.

Due to Altera purchase the Intel company is going to strengthen positions in the markets of servers and Internet of Things

Intel is going to close the transaction on merger of Altera by the end of 2015 or no later than the first quarter of the 2016th. It was unanimously approved by Boards of Directors of both companies, the solutions will be stated still by shareholders and regulating authorities. Someone from them can become on the way to a design of sale of Altera — investors therefore stocks of the company did not reach the level of the offer of Intel after its declaration worry about it, notes the USA Today edition.^[1]

Intel will pay all amount for the purchased chipmaker cash and on account of a debt. As of March 28, 2015 on accounts of corporation $14 billion money and their equivalents in the form of short-term investments accumulated. Besides, Intel had $8.2 billion in the form of long-term investments. Intel expects increase in profit and a free cash flow from acquisition of Altera in the first year from the moment of closing of the transaction.

Intel is going to use the programmable logic integrated circuits developed by Altera in the equipment for data centers. At the expense of this Intel can strengthen server business which at corporation is one of the most fast-growing and profitable. Besides, the IT giant is going to improve the products Altera by means of the technologies and to use them in devices of Internet of Things.

On December 28, 2015 Intel announced completion of process of acquisition of Altera corporation, the supplier of the production technology of programmable FPGA logic integrated circuits. The transaction will allow corporation to expand the product assortment and to offer new classes of solutions for high-growth segments of the markets of data processing centers and Internet of Things.

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