Intel, the world's largest maker of personal computer parts and CPUs, is currently negotiating with the latter, according to foreign media reports, to acquire the chip maker, the company.
The news was first reported by the US Wall Street Journal on 27th. The report said that although it was not immediately known how much Intel bid, but Altra's previous market value of about 10.4 billion U.S. dollars, and the news on the day after the announcement rose to 13.4 billion U.S. dollars. The deal could be more than $10 billion trillion, according to people familiar with the talks, citing the Financial Times.
The company is headquartered in San Jose, CA, USA, and is one of the world's two largest field programmable gate array (FPGA) manufacturers. FPGA is a semi custom circuit in the field of ASIC, which is widely used in mobile network, computer network equipment, automobile and other products.
The Financial Times said the possible deal would be the most expensive deal in the history of Intel's acquisitions. The deal will also be the biggest takeover of Silicon Valley since Facebook's acquisition of instant messaging software WhatsApp last year and may be among the top 10 in the technology industry.
Affected by the news, Intel 27th shares rose 6%, closing the price of 32 U.S. dollars, the company's market value rose to more than 150 billion U.S. dollars. Altra's shares surged 28% per cent, closing at $44.39 a share. Altra's main rival, Xilinx (Xilinx), also rose 6% per cent on the day.
While the takeover may still be fruitless, market analysts are optimistic about the impact the deal will have on Intel. Citigroup analysts said that if completed, the acquisition of Altra will increase Intel's capacity, so that Intel's earnings per share increased by 4%, annual operating income increased by 2 billion U.S. dollars.
The Financial Times reported that Intel's personal computer (PC) market is shrinking, the mobile device sector is limited, and the move to the "Internet of things" market is still in its infancy, so the company is looking for other growth areas. The acquisition of Altra will consolidate Intel's position in the data center market and further support Intel's chip manufacturing foundry business.
According to the Wall Street Journal, Intel has cooperated with Al-Interlaken in the past. Intel is trying to develop new business from chip production, and in 2013 reached an agreement with Altra to provide the latter with its most advanced manufacturing services. The possible merger will also add a fast-growing business to Intel.
Altra last year's operating income of 1.93 billion U.S. dollars, the year-on-year increase of 12%, Intel's operating income for the same period of 55.9 billion U.S. dollars, a gain of 6.1%.
The world has already announced more than $21 billion trillion in semiconductor acquisitions this year, up 122% from a year earlier, according to Dealogic, the financial data provider. In 2014, global chip makers traded only $39.1 billion trillion.