Top Microchip maker Intel buying chip designer Altera for about $16.7 Billion.
Altera manufactures chips that are used in communications and consumer electronics.
The deal comes after an earlier round of talks between the two companies ended in April.
The transaction is the latest in ongoing consolidation in the industry thats aimed at boosting revenue and profit.
Last week Avago Technologies Ltd. bought wireless-chip maker Broadcom for $37 billion.
The acquisition would likely be the biggest in Intel Corp.s 47-year history.
That delta works out to 17 percent.
This indicates that larger firms are more than willing to shell out for smaller companies in the semiconductor space.
At the same time, its work in mobile systems remains nascent.
On the other hand, Altera is noted for its higher-margin products.
Intel wanted to avoid that embarrassment and buying the company solved that problem.
Both companies boards approved the acquisition.
The merging of Intel and Altera should help ease the transition betweeen each other.
Intel also announced it will continue building Alteras ARM-based and power management power product lines.
source: www.techworm.net
