Intel targets data-centre chip-maker Altera for $16.7bn
Deal reportedly values Altera at nine times forward earnings
Chip-making titan Intel is to acquire Altera Corp, which makes chips used in data centre infrastructure, Reuters reported.
Altera shares closed at under $52 on Friday, but Intel is reportedly offering $54 a share for a purchase price of $16.7bn. The deal values Altera at around nine times forward revenue.
Analysts considered the price tag inflated, but did not foresee regulatory roadblocks because of the lack of overlap between Altera's and Intel's businesses.
Intel hopes Altera's programmable chip range will complement its own processing chips, leading to performance bumps, lower costs and more flexibility for its customers.