Intel to Sell Altera Stake to Silver Lake

Intel to Divest Majority Stake in Altera to Silver Lake

Intel announced on Monday an agreement to sell a 51% ownership share of its Altera semiconductor business to Silver Lake, a prominent private equity firm.

This transaction values Altera at $8.75 billion and will result in the division functioning with operational independence, as stated by Intel in an official press release.

Leadership Transition

Intel will continue to hold a 49% stake in Altera. A change in leadership is also planned, with Raghib Hussain appointed to succeed Sandra Rivera as Chief Executive Officer, effective May 5th.

Strategic Rationale

“This announcement underscores our dedication to refining our strategic focus, reducing operational costs, and bolstering our financial position,” commented Intel CEO Lip-Bu Tan.

He further noted that Altera is actively adapting its product offerings to capitalize on the most rapidly expanding and lucrative segments within the FPGA market.

Altera's History and Core Business

Founded in 1983 by industry pioneers Rodney Smith, Robert Hartmann, James Sansbury, and Paul Newhagen, Altera specializes in the development of field-programmable gate arrays (FPGAs).

These programmable chips, along with their supporting software, find applications across diverse sectors including communications, robotics, and artificial intelligence.

Previous Acquisition and Spin-Off Plans

Intel initially acquired Altera in 2015 for $16.7 billion, integrating it as the Programmable Solutions Group (PSG).

In 2023, Intel announced intentions to separate PSG into an independent entity, retaining majority ownership and planning an initial public offering (IPO) within a three-year timeframe.