Intel Might Buy Altera For $54 Per Share

Intel's Altera deal likely to happen at a $54 per share rate

Intel Corp, has been trying since a while now to buy Altera Corp. however now both the companies are on the verge of finalizing this deal where Intel is all set to announce the acquisition of the firm for $17 billion on Monday. This initiative will allow the chipmaker to streamline their revenues and also assist them in defending their business to stability, as reports regarding Intel news.

According to sources, the stakeholders at Altera will get approximately $54 per share reported people familiar to the matter. This is the same price which the company had rejected in April FY15. The deal is likely to happen now but considering the sensitivity of this market it can also fall apart.

This expected price is said to be 56 per cent higher than what Altera has been trading earlier. Wall Street Journal previously reported that both the companies were in talks on March 27. However, now Altera’s stocks reportedly closed at a price of $48.85, according to latest Intel updates.

A consolidation wave has occurred after Intel made its bid in the semiconductor sector. This sector has been under the limelight this year due to the potential for mergers and acquisition. Many companies have been looking for new ways through which they can spin their revenue growth and at this stage they are also targeting chip makers who are finding it relatively hard to boost their profits themselves.

Likewise Avago Technologies also announced recently that they wish to buy Broadcom Corp where the former is likely to spend $37 billion which is said to be biggest tech acquisition so far. Some of the people who might be interested in buying have substantial cash reserves along with the ability to borrow with relatively low interest rates.  On March 28 Intel reported of short term investments along with $14 billion of cash. Apart from this a $8.2 billion in terms of long term investments.

 Intel has not been doing relatively well at this point of time where buying Altera will prove to be fruitful for them to a great extent. Considering the dynamics of the semiconductor industry, this will help them in attaining stability after a long period of time. Many skeptics believe that it is still quite early to predict if the company will be successful in buying Altera out since earlier the company backed out at the last moment.

So now Intel is very close to unveiling a breakthrough if all remains in their favor then we will soon see Altera as part of Intel.