Intel Sells 51% Stake in Altera to Silver Lake in $8.75 Billion Deal

Intel Corporation has announced the divestiture of a 51% stake in its Altera division to Silver Lake, valuing the programmable logic company at $8.75 billion.

This transaction marks a significant shift in Intel’s focus, enabling the tech giant to streamline its business while retaining a 49% interest in Altera, ensuring continued participation in its growth trajectory.

Intel revealed that Raghib Hussain, former president of Products and Technologies at Marvell, will assume the role of CEO of Altera, replacing Sandra Rivera, effective from May 5, 2025.

Hussain’s extensive experience, including his tenure as the Chief Operating Officer at Cavium, positions him well to lead Altera into a new era of innovation.

The deal underscores Altera’s pivotal role in the FPGA (Field Programmable Gate Array) market.

Known for its highly scalable architecture and comprehensive toolchain, Altera is geared towards meeting the demands of an AI-driven market, focusing on strategically important segments such as industrial, communications, data centers, and emerging fields like AI/edge computing and robotics.

CEO Statements and Company Vision

Intel’s CEO, Lip-Bu Tan, emphasized the strategic rationale behind the sale, stating that it reflects Intel’s commitment to sharpening its focus, reducing operational expenses, and strengthening its financial position.

Tan highlighted the progress Altera has made in repositioning its product portfolio to engage with the fastest-growing segments of the FPGA market, crediting Rivera for her leadership over her 25-year tenure.

On the other hand, Silver Lake’s involvement was described by its chairman and managing partner, Kenneth Hao, as a rare opportunity to invest in a preeminent semiconductor company.

He expressed that Silver Lake’s investment would bolster Altera’s technological edge and facilitate its expansion into rapidly growing, AI-centric markets.

Altera’s Strategic Direction and Financial Performance

Hussain himself showed enthusiasm for leading Altera into its future, describing the partnership with Silver Lake as a catalyst for Altera’s aim to become the world’s leading FPGA solutions provider.

He acknowledged Rivera’s contributions in laying a strong foundation for Altera’s ongoing success.

Altera’s financials for 2024 showed a revenue of $1.54 billion, with a GAAP gross margin of $361 million juxtaposed against a GAAP operating loss of $615 million.

However, when adjusted for acquisition-related costs, share-based compensation, and restructuring charges, the non-GAAP measures presented a much more favorable picture, with a gross margin of $769 million and an operating income of $35 million.

The transaction is slated for completion in the second half of 2025, pending customary closing conditions.

Upon finalization, Altera’s financial results will be deconsolidated from Intel’s consolidated statements, marking Intel’s full transition towards becoming a more focused company in its core areas of expertise.

The forward-looking statements caution that the transaction carries risks related to regulatory approvals, potential disputes or litigation, retention of key personnel, and the rapid changes within the semiconductor market, which could impact the transaction or Altera’s operations.

Morgan Stanley & Co. LLC served as the financial advisor to Intel in this landmark deal.

While the deal underscores Intel’s strategic refocus, it also signals Altera’s continued evolution as an independent leader in FPGA technology, well-positioned to leverage AI-driven market opportunities under Hussain’s leadership and with Silver Lake’s backing.

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