Intel logo (Photo : Reuters )
Intel is imposing its dominance in the semiconductor market by buying out one of its competitor. Intel Corporation recently announced that it will buy out Altera Corporation for $16.7 billion as part of its industry consolidation plans.
According to Bloomberg, Intel will be paying $54 per share in order to acquire Altera. Intel's decision to acquire Altera is part of the company's ongoing Internet of Things plan. However, many industry analysts comment that aside from the drive to promote the Internet of Things, Intel's move to acquire Altera is part of the company's plan to boost its revenue and profit.
According to St. Louis Post Dispatch, the $16 billion acquisition plan from Intel is the biggest deal in the company's 47-year history. The acquisition is also a strategically profitable move for Intel since Altera is focused in designing microchips embedded in cars, a market Intel is planning to conquer.
Intel's deal with Altera will help the former to extend its business when it comes to microprocessors used in servers and data centers. Intel's division devoted to data center was reported to have an increase in revenue by as much as 19 percent. The increase in Intel's profit can be attributed to the upsurge in terms of server demands especially from giant Internet companies like Google and Facebook.
JP Morgan and Rothschild Incorporated were responsible for giving business advice for Intel while the deal is under negotiation. On the other hand, Goldman Sachs worked with Altera. Intel's legal advice came from Gibson, Dunn & Crutcher LLP while Altera seek legal advice from Wilson Sonsini Goodrich & Rosati legal counsel.
