Intel to Sell Altera’s 51% Stake, Valuing the Unit at $8.75 Billion
In a significant move, Intel, the world’s largest semiconductor company, has announced that it has entered into a definitive agreement to sell 51% of its Altera business to Silver Lake, a private equity firm, valued at $8.75 billion. Under the terms of the agreement, Intel will retain the remaining 49% stake in Altera’s business, allowing it to focus on its core operations.
The transaction is expected to close in the second half of 2025, subject to customary closing conditions. The news was announced on April 14, 2025, and has sent shockwaves through the tech industry.
Altera is a leading provider of programmable logic devices, which are used in a wide range of applications, including data center infrastructure, automotive systems, and industrial automation. The company was acquired by Intel in 2015 for $16.7 billion, as part of the chipmaker’s efforts to expand its presence in the rapidly growing market for programmable logic devices.
In a statement, Intel said that the sale of Altera’s majority stake would enable the company to focus on its core businesses, including the development of central processing units (CPUs), graphics processing units (GPUs), and other semiconductor products.
“We believe this transaction will enable Intel to better focus on our core businesses and drive growth in our core areas, while also providing Altera with the resources and flexibility it needs to continue innovating and growing,” said Pat Gelsinger, Intel’s Chief Executive Officer.
Silver Lake, the private equity firm that is acquiring Altera’s majority stake, has a strong track record of investing in and growing technology companies. The firm has previously invested in a number of prominent tech companies, including Twitter, Alibaba Group, and Dell.
The sale of Altera’s majority stake is seen as a strategic move by Intel to refocus its attention on its core businesses, which have been under pressure in recent years due to increased competition from rival chipmakers. The chipmaker has been working to diversify its product portfolio and reduce its dependence on its traditional CPU business.
In recent years, Intel has expanded its presence in the growing market for artificial intelligence (AI) and machine learning (ML) chipsets, as well as the market for autonomous vehicles. The company has also made significant investments in the development of 5G wireless technology and the Internet of Things (IoT).
The sale of Altera’s majority stake is also seen as a way for Intel to generate cash and reduce its debt, which has been a major priority for the company in recent years. Intel has been working to reduce its debt levels in order to improve its financial flexibility and position itself for future growth.
The transaction is expected to be completed in the second half of 2025, pending customary closing conditions. The deal is subject to regulatory approval and other customary closing conditions.
In conclusion, the sale of Altera’s 51% stake to Silver Lake is a significant move by Intel to refocus its attention on its core businesses and reduce its debt levels. The transaction is expected to close in the second half of 2025 and is seen as a strategic move by Intel to drive growth and improve its financial flexibility.
Source:
https://www.reuters.com/markets/deals/intel-sell-51-stake-altera-silver-lake-2025-04-14/
