Intel to buy Altera for $16.7B

From CNET: Intel agreed to buy fellow chipmaker Altera for about $16.7 billion in cash, giving Intel more capabilities in its data-server and Internet of Things businesses.

Intel said Monday it will pay $54 per Altera share and expects to close the deal in six to nine months. Altera's stock has surged more than 40 percent since late March, when news of the companies' negotiations first surfaced. Shares were up an additional 4.8 percent before the market opened Monday.

"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 Intel CEO Brian Krzanich, referencing Moore's Law, the concept of consistently improving chips' complexity.

Santa Clara-based Intel, the largest chipmaker on Earth, makes the processors that power the majority of the world's personal computers and data-center servers. Altera, based in nearby San Jose, Calif., focuses on chips called field-programmable gate arrays that customers can reprogram for specific tasks and that are used in the automotive, aerospace and medical industries.

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