It paid $54 a share for the company in a cash deal that adds up to a staggering $16.7 billion.
Intel said in a prepared statement that the acquisition will lead to new classes of products in the data centre and the internet of things (IoT) segments of the market.
Altera had been reluctant to be taken to the altar by putative bridegroom Intel because the dowry the Santa Clara firm had offered wasn’t enough.
Brian Zrzanich, CEO of Intel, said that his company would “harness the power of Moore’s Law” to do more in the future.
John Daane, the CEO of Altera, said the deal will drive “meaningful value”, whatever that means, for its customers, for its associates and for its staff.
Altera will be an Intel business unit and ARM based product lines will continue to be designed.