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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