Intel All Set to Buy Rival ChipMaker Altera for $17B

Intel Corps’ intention of acquiring rival company Altera, finally seems to be shaping up as it prepares to announce the roughly $17 billion acquisition on Monday, a move that would allow it to boost revenue and help defend a crucial business.

Altera stockholders will receive about $54 a share, the amount which was rejected by them in earlier rounds of acquisition talks in April this year.

Intel’s bid continues a wave in the semiconductor industry, a particularly active sector for deal making of late in a red-hot year for mergers and acquisitions, as companies search for new sources of revenue growth and target chip makers finding it hard to boost profitability on their own.

Intel is expected to use Altera’s line of programmable chips to get revenue growth, according to WSJ.

Both the companies in the transaction are already partners. Intel’s factories churn out high-end semiconductors for Altera, which designs chips but turns to external manufacturers to make them.

The news comes within a week of Avogo acquiring its rival chipmaker Broadcom for $17 billion cash and $20 billion in shares. Earlier last year, Qualcomm acquired chipmaker CSR for $2.5 billion.