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Altera Buys Applied Micro Subsidiary

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Altera  (NASDAQ: ALTR  ) has acquired Applied Micro Circuits Corp. (NASDAQ: AMCC  ) subsidiary TPACK for an undisclosed sum.

Altera announced Monday that it has acquired AMCC's Denmark-based subsidiary, which supplies programmable data transport and switching semiconductors for use by telecommunications equipment manufacturers, who in turn sell their equipment to network operators working at speeds of 10-Gbps, 40-Gbps, and 100-Gbps.

Financial terms of the deal were not disclosed. Altera, however, is in a strong financial position to make acquisitions such as the TPACK deal, boasting a balance sheet plump with $3 billion in cash, vs. only $500 million in debt.

Investors were initially skeptical of the deal, selling off Altera shares by 1.6% in Monday trading. Today, they're relenting a bit, as Altera shares climb 1.6%. The shares recently traded around $33.32.

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Rich Smith

As a defense writer for The Motley Fool, I focus on defense and aerospace stocks. My job? Every day of the week, I'm monitoring the news, figuring out the winners and losers, and tracking down the promising companies for you to invest in. Follow me on Twitter or Facebook for the most important developments in defense & aerospace, and other great stories.

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Related Tickers

10/9/2015 3:59 PM
ALTR $52.49 Up +0.77 +1.49%
Altera Corp CAPS Rating: ****
AMCC $5.99 Down -0.13 -2.12%
Applied Micro Circ… CAPS Rating: **