Intel Corp. (NASDAQ: INTC) was following the markets down, but only slightly, late in Monday’s trading session. This semiconductor giant announced earlier in the day that it had completed its acquisition of Altera. The acquisition complements Intel’s product portfolio and enables new classes of products in the high-growth data center and Internet of Things (IoT) market segments.
Altera will operate as a new Intel business unit called the Programmable Solutions Group (PSG), led by Altera veteran Dan McNamara. Intel will also continue the support and future product development of Altera’s FPGA, ARM-based SoC and power products.
In addition to strengthening the existing FPGA business, PSG will work closely with Intel’s Data Center Group and IoT Group to deliver the next generation of highly customized, integrated products and solutions.
Ultimately, Intel expects the acquisition to be accretive to earnings per share and free cash flow in the first full year after the transaction’s close.
Brian Krzanich, Intel CEO, commented on the completion:
Altera is now part of Intel, and together we will make the next generation of semiconductors not only better but able to do more. We will apply Moore’s Law to grow today’s FPGA business, and we’ll invent new products that make amazing experiences of the future possible – experiences like autonomous driving and machine learning.
Dan McNamara, corporate vice president and general manager of the Programmable Solutions Group, added:
As part of Intel, we will create market-leading programmable logic devices that deliver a wider range of capabilities than customers experience today. Combining Altera’s industry-leading FPGA technology and customer support with Intel’s world-class semiconductor manufacturing capabilities will enable customers to create the next generation of electronic systems with unmatched performance and power efficiency.
Shares of Intel were trading down 0.6% at $34.77 Monday afternoon, with a consensus analyst price target of $36.16 and a 52-week trading range of $24.87 to $37.74.