NEW YORK (TheStreet) -- Shares of Altera (ALTR) are higher by 6.15% to $51.85 in Monday morning's trading session after Intel (INTC) agreed to buy the semiconductor company for about $16.7 billion in cash, or about $54 a share.
Intel's deal for the San Jose-based company is its biggest since it bought security software maker McAfee in 2011 for $7.7 billion, Reuters reported.
The merger will combine Intel's leading-edge products and manufacturing process with Altera's leading field-programmable gate array technology.
"Given our close partnership, we've seen firsthand the many benefits of our relationship with Intel-the world's largest semiconductor company and a proven technology leader, and look forward to the many opportunities we will have together," said Altera CEO John Daane.
"With this acquisition, we will harness the power of Moore's Law to make the next generation of solutions not just better, but able to do more," said Intel CEO Brian Krzanich.
The acquisition is expected to close within six to nine months, the companies said.
Shares of Intel are falling 1.5% to $33.94.
Separately, TheStreet Ratings team rates ALTERA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALTERA CORP (ALTR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."