Intel Corp agreed to buy Altera Corp for $16.7 billion as the world's biggest chipmaker seeks to make up for slowing demand from the PC industry by expanding its line-up of higher-margin chips used in data centers.
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Intel said it would offer $54 per share in cash, a 10.5 percent premium to Altera's closing price on Friday.
The deal is the third big one in the highly fragmented chip industry this year. Avago Technologies Ltd agreed last week to buy Broadcom Corp for $37 billion in the industry's biggest-ever takeover.
(Reporting By Lehar Maan in Bengaluru; Editing by Ted Kerr)