(Telecompaper) Intel confirmed an agreement to acquire chipmaker Altera for USD 16.7 billion. The offer of USD 54 cash per share is a 10.5 percent premium on Altera's last closing price. Altera's leading field-programmable gate array (FPGA) technology is expected to enable new classes of products for Intel to meet customer needs in the data centre and Internet of Things market segments. Intel said it 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 manufacturing model. Altera will become an Intel business unit to facilitate continuity of existing and new customer sales and support. Intel also plans to continue support and development for Altera's ARM-based and power management product lines. Intel expects the takeover to add to adjusted EPS and free cash flow in the first year after close. The deal should be completed within 6-9 months, pending regulatory clearance and approval by Altera shareholders.