Intel Corp. (NASDAQ: INTC) announced on Monday that it completed the acquisition of Altera for $16.7 billion, marking the biggest acquisition in Intel’s history.
Altera is an American manufacturer of programmable logic devices. It provides ingenious custom logic solutions include FPGAs, SoCs, and CPLDs. FPGAs, field-programmable gate arrays, is Altera’s leading edge programmable logic solution. It enables users to develop customized systems based on specific application requirements and its most important and useful feature is that it can be reprogrammed.
This acquisition makes Intel the second-largest maker of chips in the world. Intel used to be known for its PC and hardware. But after several merger and acquisition, it becomes a company specializing more in software. Many big high-tech companies such as Facebook and Google rely on Intel’s Xeon processors. After the acquisition of Altera, Intel plans to sell its Xeon processors with FPGAs in a package starting in 2016.
Wendell Brooks, the Vice President of Intel, is confident on this deal. “As the new guy here, I’m not going to get the benefit from my board or my shareholders to do future M&A if I don’t get this one right, so I’m very much focused on improving our track record,” said Brooks, who in charge of this acquisition.
Altera will operate as a new business unit in Intel and this new unit is called programmable solutions group. Brooks estimated that the acquisition would bring a 30% improvement in processors and 50% improvement in FPGAs separately.