The FPGA experts will continue to operate as a new Intel unit called the Programmable Solutions Group. Existing Altera products and customers will not be affected by the buyout and will continue to receive support.
Intel believes the purchase will allow it to "enable new classes of products in the high-growth data center and Internet of Things market segments." Among other things, the firm plans to "offer Altera's FPGA products with Intel Xeon processors as highly customized, integrated products." If you've been keeping track, those are the FPGA-enabled Xeons that will reportedly come out next year.