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Intel sells majority stake in Altera to Silver Lake for $4.46 billion, valuing the company at $8.75 billionA New Era for Altera as the leading pure-play FPGA Semiconductor FirmRaghib Hussain apppointed as the new CEO amid Intel’s strategic realignment
Intel is navigating through a challenging landscape, particularly under the guidance of new CEO Lip-Bu Tan. The company’s recent discussions have hinted at substantial shifts, including potential divestitures or reorganizations of its chip-related operations.
In a significant move, Intel has finalized an agreement to transfer a 51% stake in its Altera subsidiary to private equity firm Silver Lake for $4.46 billion. This transaction values Altera at approximately $8.75 billion, a notable decline from the nearly $17 billion Intel invested in acquiring the company in 2015.
A Transformative Opportunity
Altera has been a pioneer in the development of field-programmable gate arrays (FPGAs) for over 40 years, supplying customizable semiconductor solutions across various sectors, including telecommunications, aerospace, government, data centers, and industrial operations.
This acquisition allows Altera to operate independently while solidifying its status as the largest dedicated FPGA semiconductor firm globally. Intel will retain a 49% ownership stake, maintaining a degree of involvement as it redirects its focus towards its fundamental business operations.
The transaction is expected to complete in the latter half of 2025, subject to standard regulatory approvals.
Following the deal’s closure, Intel plans to deconsolidate Altera’s financial results. In 2024, Altera disclosed revenue of $1.54 billion, with a GAAP operating loss of $615 million and a non-GAAP operating income of $35 million.
Raghib Hussain, who previously served as the president of Products and Technologies at Marvell, will take over as CEO of Altera starting May 5, 2025, succeeding Sandra Rivera.
Silver Lake’s chairman and managing partner, Kenneth Hao, emphasized the significance of the investment, stating, “This opportunity represents a transformative moment in investing in a leader in advanced semiconductors. Collaborating with Raghib, we aim to bolster Altera’s leadership in technology while exploring new, AI-driven markets such as edge computing and robotics. We also anticipate a productive partnership with Intel, ensuring continued U.S.-based foundry services and enhanced customer engagement.”
Lip-Bu Tan heralded the agreement as a strategic progression for Intel, noting, “This announcement underscores our dedication to refining our focus, streamlining costs, and reinforcing our financial stability. Altera is evolving its product lineup to capitalize on the fastest-expanding and most lucrative segments of the FPGA market. We appreciate Sandra’s impactful leadership over her 25-year tenure at Intel and wish her success in her future endeavors. Raghib is an outstanding executive chosen for his extensive industry knowledge and proven success, and we are eager to collaborate with Silver Lake after the transaction closes, as their expertise will facilitate Altera’s advancement and enhance Intel’s economic returns.”
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