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Intel gobbles up chipmaker Altera in $16.7 BILLION splurge

Flirty firms stop sniffing each other's asses and get down to business

Intel has subsumed Altera for $16.7bn (£11bn), ending months of “will they, won't they” takeover chatter.

The acquisition will allow Chipzilla to get its mitts on Altera's field-programmable gate array (FPGA) tech – chips that customers can configure after purchase. The acquired unit will sit in Intel's bit barn division.

The company is trying to beef up its enterprise business following tougher trading conditions in the PC and mobile arena, and a less than rosy short-term outlook for those markets.

Intel reckons the deal will enable it to tap into the internet of things hype gold rush, and boost the data centre business unit.

Brian Krzanich, the big boss at Intel, said: "Intel's growth strategy is to expand our core assets into profitable, complementary market segments."

In a gushing statement John Daane, president of Alteram, added: "Given our close partnership, we've seen firsthand the many benefits of our relationship with Intel—the world's largest semiconductor company and a proven technology leader, and look forward to the many opportunities we will have together."

Altera will become an Intel business unit. Intel said it will continue to support and develop Altera's ARM-based and power management product lines.

Last week chip designer and supplier Avago bought chip designer Broadcom in a cash-and-stock deal worth $37bn (£24bn). ®

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