Intel said it will buy fellow chip maker Altera for $54 a share in an all-cash transaction valued at approximately $16.7 billion.
Altera makes programable chips, or chips that can be configured by customers after they buy them. These programmable chips are commonly used in cellular base stations. But they are also beginning to be used in data centers for cloud computing — an area of growth as people increasingly store and grab data online.
Intel also expects them to be used in clothes and household items, another growth area known as Internet of Things, or IoT.
“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, said Brian Krzanich, CEO of Intel. “Whether to enable new growth in the network, large cloud data centers or IoT segments, our customers expect better performance at lower costs,” he said.
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SOURCE: Kaja Whitehouse