Chipmaker Intel to buy Altera for $16.7 bn

Chipmaker Intel announced Monday it will acquire Altera for $16.7 billion, accelerating a wave of consolidation in the semiconductor industry.

Intel will pay $54 per share in cash for Altera, which designs processors for phone networks, cars and other devices. The acquisition is the largest ever for Intel.

Intel said the deal would boost its portfolio of chips for data centers and the 'Internet of Things,' an emerging area of transactions that do not require human-to-human or human-to-computer contacts.

The longtime leader in semiconductors for personal computers, Intel has been shifting its focus to mobile devices and connected objects.

"Intel's growth strategy is to expand our core assets into profitable, complementary market segments," said chief executive Brian Krazanich.

The deal follows the May 28 announcement that Singapore-based Avago Technologies would buy rival Broadcom in a $37 billion deal aimed at mobile chipmaking.

In opening trade, Altera shares jumped 6.2 percent to $51.85, while Intel was unchanged at $34.45.