Intel Corp. (INTC) has agreed to acquire fellow chipmaker Altera Corp. (ALTR) for $16.7 billion, or $54 per share, the latest in a whirlwind of semiconductor deals. Intel, the largest semiconductor company in the world, had been rebuffed by Altera previously. However, Altera’s shareholders, particularly TIG Advisors LLC, agitated for a deal and the two companies managed to reach an agreement. They said in a joint statement that combining would help them develop products for data center markets and for the ‘Internet of things,’ a model that gives everyday objects internet connectivity and allows them to send and receive data. 44% of Altera’s sales come from telecommunications companies; other customers include industrial, military and automotive groups. Intel will finance the deal with a combination of cash and new debt. According to The Deal’s Senior Writer Chris Nolter, the semiconductor industry is consolidating at a rapid pace. The Deal’s Senior Reporter Lisa Allen has the details from New York.
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