Intel has agreed to sell a 51% stake in its Altera business to Silver Lake in a deal that values the field programmable gate array specialist at $8.75bn, establishing it as the largest standalone companies focused exclusively on FPGA semiconductor solutions.
The strategic investment, will see the tech-focused private investment firm take operational control of Altera, with Intel retaining a 49% minority stake. The deal is expected to close in the second half of 2025, subject to customary regulatory approvals and closing conditions.
According to a press release, the transaction is designed to give Altera greater independence and focus as it aims to accelerate its roadmap in high-growth markets such as AI, edge computing, and robotics. Altera, a former publicly traded company acquired by Intel in 2015, will now re-emerge as “a pure-play FPGA provider, supported by both Intel’s foundry services and Silver Lake’s growth-focused investment strategy”.
The move comes as part of Intel’s broader plan to streamline operations, reduce costs, and improve its balance sheet. “Today’s announcement reflects our commitment to sharpening our focus and strengthening our financial position,” said Intel CEO Lip-Bu Tan. “We believe Altera is now well positioned to compete as an industry leader in the most dynamic parts of the FPGA market.”
As part of the deal, Raghib Hussain, former President of Products and Technologies at Marvell and Co-Founder of Cavium, will become CEO of Altera, effective 5 May, 2025. He succeeds Sandra Rivera, who led the business through its transition and is stepping down after 25 years at Intel.
Altera generated $1.54bn in revenue in FY2024, with a GAAP operating loss of $615m, though non-GAAP results showed a modest operating income of $35m. Following the transaction, Intel will deconsolidate Altera’s financial results from its own reporting.
Morgan Stanley served as financial advisor to Intel on the transaction.
