16.7 billion reasons Altera sold out to Intel

Rumors have been swirling around this one for a while, but it just became official: Intel is buying FPGA maker Altera for $16.7 billion.  The official news is available via this funky joint Intel-Altera website, which says:

Intel and Altera announced on June 1, 2015 that they have entered into a definitive agreement under which Intel would acquire Altera for $54 per share in an all-cash transaction valued at approximately $16.7 billion.

The acquisition will couple Intel’s leading-edge products and manufacturing process with Altera’s leading field-programmable gate array (FPGA) technology. The combination is expected to enable new classes of products that meet customer needs in the data center and Internet of Things (IoT) market segments. Intel plans to offer Altera’s FPGA products with Intel Xeon® processors as highly customized, integrated products. The companies also expect to enhance Altera’s products through design and manufacturing improvements resulting from Intel’s integrated device manufacturing model.

These hybrid Xeon-FPGA things ought to be interesting, especially if Xeon Phi also gets in on the action at some point.

The full press release can be found here. It says that Intel "plans to continue support and development for Altera’s ARM-based and power management product lines." Regardless, one would expect this deal to give Intel a foothold in markets where ARM has traditionally been the dominant player.

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