Intel has agreed to buy smaller chipmaker Altera ALTR +5.99% for $16.7 billion, the company said on Monday, as it seeks to expand beyond chips for servers and computers.
This is the third big deal in the semiconductor space this year and the second in a matter of days.
Under the terms of the deal, Intel said it would pay $54 per share in cash, an 11% premium to Altera’s closing price of $48.85 on Friday. Since reports of a potential deal first surfaced in March, Altera’s stock has risen more than 40%.
Intel, Which is the world’s largest maker of the chips used in corporate servers, has been looking to expand into mobile as consumers increasingly use smartphones and tablets. Altera makes programmable chips and is a way to do this. Altera has makes the chips that can be used for data centers and Internet of Things devices.
This comes as Intel’s desktop computer business has struggled and put a damper on growth. Earlier this year, it was among the reasons that Intel slashed its revenue outlook.
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