Intel Sells 51% Stake in Altera for $8.75B in 2025, Boosting Market Confidence
Intel has agreed to sell a majority 51% stake in its Altera programmable chip division to Silver Lake, a leading tech-focused private equity firm, in a deal valued at $8.75 billion. This strategic move aims to streamline Intel’s operations and strengthen its financial position.
Highlights
- Intel is selling 51% of its Altera programmable chip unit to Silver Lake, a private equity firm specializing in technology investments.
- The transaction values Altera at $8.75 billion, leaving Intel with a 49% ownership stake.
- In fiscal year 2024, Altera generated $1.54 billion in revenue and posted an adjusted operating profit of $35 million.
Intel's shares surged significantly on Monday morning following the announcement of the sale of a majority stake in its Altera business to Silver Lake. This strategic partnership is expected to accelerate growth and innovation within Altera.
The deal, which values Altera at $8.75 billion, will result in Intel retaining a 49% stake. Raghib Hussain, formerly president of Products and Technologies at Marvell, will assume the role of Altera CEO starting May 5.
Intel CEO Lip-Bu Tan emphasized, "This transaction underscores our dedication to focusing on core strengths, reducing costs, and enhancing our balance sheet."
The agreement is anticipated to close in the latter half of 2024, after which Altera’s financial results will no longer be consolidated in Intel’s quarterly reports. Altera posted $1.54 billion in revenue and $35 million in adjusted operating income in fiscal 2024.
This announcement follows earlier market speculation about potential deals involving Intel’s programmable chip assets.
Intel shares rose approximately 6% in recent trading sessions. The company is scheduled to release its first-quarter earnings report on April 24, after market close.
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