Intel Corporation (NASDAQ:INTC) is looking forward to acquire Altera Corporation (NASDAQ:ALTR), which is going to be the biggest acquisition made by Chip maker ever. Altera Corporation is also a chip maker like Intel Corporation and is well known in the semiconductor industry. According to the reports, the deal is likely to be about $10 billion as Intel gears up to expand its grasp to wider fields. Altera Corporation is better known for the programmable chips it makes for the mobile phone industry and Intel’s interest in the chip maker gives us a clear indication of what might be in store!
In the recent past, Intel Corporation’s CEO Brian Krzanich has stated that they are looking to expand themselves into new markets, which will in turn boost the growth. Intel is one of the major chip makers in the for desktop computers and laptops, but has not seen the kind of growth that it expects. The experts believe that the growth of smartphones has made people more dependent on them instead of old school computers.
The prediction shows that the revenue for Intel Corporation will be around $12.8 billion, which is $1 billion less than what they earned during the last quarter of 2014. The news of the deal has already helped Intel Corporation to gain 6% raise on the prices of its shares already. On the other hand, the first talks of the deal with Intel has increased the price per share for Altera Corporation by 28%. None of the involved companies have made any comment regarding the deal as of yet, but there seems to be a fair chance of it.
Intel had previously acquired security software maker McAfee in the year 2011 at $7.7 billion. The acquisition of Altera Corporation will mean that Intel’s outright arrival into the mobile phone industry, thus opening up a much better scope of expansion.