Private equity firm Silver Lake is in exclusive negotiations to acquire a majority stake in Intel’s programmable chip business, Altera, in a deal that could value the unit at approximately $9bn, according to a report by Bloomberg citing unnamed sources familiar with the matter.
Silver Lake is finalising investment details, though the exact size of its stake remains undetermined, one source noted, while discussions could also face delays, given the complexity of the deal.
Neither Silver Lake nor Intel has commented on the matter.
Intel, which acquired Altera for nearly $17bn in 2015, has been exploring ways to raise capital amid cost-cutting efforts. The chipmaker is seeking external investment in Altera ahead of a potential IPO, with plans to conclude discussions by early 2025, former Intel CEO Pat Gelsinger previously stated.
The move comes as Intel navigates financial pressures and repositions its business, with rivals Taiwan Semiconductor Manufacturing Co (TSMC) and Broadcom reportedly exploring deals that could result in Intel splitting into two separate entities, as per a Wall Street Journal report.
Silver Lake had been among a group of private equity firms — including Bain Capital and Francisco Partners — that expressed interest in acquiring a minority stake in Altera, Reuters previously reported.
