Intel sells 51% stake in Altera for $4.46 Billion

Intel will sell control of its FPGA subsidiary, Altera, to private equity firm Silver Lake for $4.46 billion. The deal values Altera at $8.75 billion, nearly half of the $17 billion Intel paid in 2015. 

According to Bloomberg, Intel will receive $3.4 billion in cash from the deal. Intel CEO Lip-Bu Tan said the move will "sharpen" the company's focus, lower its expense structure, and strengthen the balance sheet.

As part of the transition, Altera CEO Sandra Rivera will step down and be replaced by Raghib Hussain, president of products and technologies at Marvell Technology Inc.

Kenneth Hao, chairman and managing partner at Silver Lake, said the investment is "a once-in-a-generation opportunity to invest in a scale leader in advanced semiconductors."

Altera is a leading supplier of programmable chips, including Filed-programmable Gate Arrays (FPGA) and System-on-a-chip (SoC) components. These chips can be configured for various applications such as data centers, communications, industrial automation, and more.     

The deal is expected to close in the second half of 2025. Following the transfer, Intel will separate Altera's financial results from its own, allowing it to operate as a fully independent company. 

"Altera is well-positioned to build on its momentum and deliver breakthrough FPGA-based solutions that are shaping the future of compute driven by AI," said Hussain. "I am grateful for the impact Sandra has made and the team she has built as we begin Altera's next phase of growth."