Intel on Monday introduced that it has entered right into a definitive settlement to promote 51% of its Altera semiconductor enterprise to Silver Lake, a non-public fairness agency.
The deal, which values Altera at $8.75 billion, will make Altera “operationally impartial,” Intel mentioned in a press launch. Intel will retain 49% possession in Altera, which will probably be led by Raghib Hussain, who’s set to succeed Sandra Rivera as CEO on Might 5, 2025.
The transaction is anticipated to shut within the second half of 2025, Intel mentioned, topic to customary closing circumstances.
“Right now’s announcement displays our dedication to sharpening our focus, reducing our expense construction and strengthening our steadiness sheet,” mentioned Intel CEO Lip-Bu Tan in an announcement. “Altera continues to make progress repositioning its product portfolio to take part within the quickest rising and most worthwhile segments of the FPGA market.”
Altera was based in 1983 by semiconductor veterans Rodney Smith, Robert Hartmann, James Sansbury, and Paul Newhagen. The corporate develops a variety of programmable chips and the software program to assist them, together with for industries like communications, robotics, and AI.
Intel acquired Altera in 2015, and it grew to become a newly fashioned enterprise unit referred to as Programmable Options Group (PSG). In 2023, Intel introduced that it might spin off PSG right into a separate firm, whereas sustaining majority possession and intending to hunt an IPO inside three years.
Final yr, lntel introduced that the newly impartial firm would reestablish the Altera identify and branding, and in January, Altera formally grew to become an impartial subsidiary of Intel.
In fiscal yr 2024, Altera generated revenues of $1.54 billion, in line with Intel.
This can be a creating story, verify again for updates.
