"Altera is now part of Intel, and together we will make the next generation of semiconductors not only better but able to do more," said Brian Krzanich, Intel CEO. "We will apply Moore's Law to grow today's FPGA business, and we'll invent new products that make amazing experiences of the future possible – experiences like autonomous driving and machine learning."

Altera will operate as a new Intel business unit called the Programmable Solutions Group (PSG), led by Altera veteran Dan McNamara. Intel is committed to a smooth transition for Altera customers and will continue the support and future product development of Altera's many products, including FPGA, ARM-based SoC and power products.

In addition to strengthening the existing FPGA business, PSG will work closely with Intel's Data Center Group and IoT Group to deliver the next generation of highly customized, integrated products and solutions.

"As part of Intel, we will create market-leading programmable logic devices that deliver a wider range of capabilities than customers experience today," said McNamara, corporate vice president and general manager of the Programmable Solutions Group at Intel. "Combining Altera's industry-leading FPGA technology and customer support with Intel's world-class semiconductor manufacturing capabilities will enable customers to create the next generation of electronic systems with unmatched performance and power efficiency."

Intel expects the acquisition to be accretive to non-GAAP EPS and free cash flow in the first full year after close, consistent with prior guidance. Intel expects the acquisition to be dilutive to GAAP EPS in the first full year after close primarily due to acquisition-related costs.