Intel Sells 51% of Altera to Silver Lake

By Bobby Samwell • Monday, April 14 15:20 • Permanent Link

Intel Corporation has announced a definitive agreement to sell 51% of its Altera business to Silver Lake, valuing Altera at $8.75 billion. This move aims to establish Altera’s operational independence and make it the largest pure-play Field Programmable Gate Array (FPGA) semiconductor solutions company. Intel will retain the remaining 49% of the Altera business.

Raghib Hussain has been appointed as the Chief Executive Officer of Altera, succeeding Sandra Rivera. Hussain joins Altera from his previous role as the President of Products and Technologies at Marvell. Intel's CEO, Lip-Bu Tan, expressed gratitude for Sandra's leadership and lasting impact as she begins a new chapter, and he looks forward to partnering with Silver Lake to accelerate Altera’s efforts and unlock additional economic value for Intel.

The investment by Silver Lake is seen as a once-in-a-generation opportunity to invest in a scale leader in advanced semiconductors, with a focus on strengthening Altera’s technology leadership position and investing in emerging AI-driven markets such as edge computing and robotics.

Altera, with more than 40 years of experience, provides leading programmable solutions in strategically important segments such as industrial, communications, data center, military, aerospace, government, AI/edge, and robotics. In fiscal year 2024, Altera generated revenues of $1.54 billion, with a GAAP gross margin of $361 million and a GAAP operating loss of $615 million. The non-GAAP gross margin was reported to be $769 million, and the non-GAAP operating income was $35 million.

The transaction is expected to close in the second half of 2025, subject to customary closing conditions. Upon closing, Intel expects to deconsolidate Altera’s financial results from its consolidated financial statements.

Morgan Stanley & Co. LLC acted as the financial advisor to Intel in this transaction. Following these announcements, the company's shares moved 4.2%, and are now trading at a price of $20.57. For the full picture, make sure to review Intel's 8-K report.

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