Acquisition: Intel in talks with Altera on tie-up

Altera shares jumped 28% on the news to $44.39, pushing its market valuation to some $13 billion.

NEW YORK:
US tech giant Intel is in talks with rival Altera on a tie-up to broaden the chipmaker’s product line amid growth in Internet-connected devices. Such a deal for Altera, with a market capitalisation of $10.4 billion before Friday, would be Intel’s largest acquisition ever. Altera, which designs processors for phone networks, cars and other devices, would help Intel diversify its product line amid slumping demand for personal computers. Based in San Jose, California – a short distance from Intel’s Santa Clara home – Altera had revenues in the past year of $1.9 billion and employs some 3,000 people worldwide. Intel, the long-time leader in semiconductors for personal computers, has been shifting its focus to mobile devices and connected objects, including a recently-announced heart monitor which is incorporated in audio headphones. Altera shares jumped 28% on the news to $44.39, pushing its market valuation to some $13 billion.


Published in The Express Tribune, March 29th, 2015.

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