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

Intel Corporation has entered into a definitive agreement to divest a 51% controlling stake in its Altera business to global technology investment firm Silver Lake, in a transaction that values Altera at $8.75 billion.

The deal will establish Altera as the world’s largest standalone pure-play field-programmable gate array (FPGA) semiconductor solutions company, enhancing its operational independence and strategic focus within the rapidly evolving artificial intelligence (AI) and edge computing markets.

Altera to Operate Independently as Leading FPGA Provider

Under the terms of the agreement, Intel will retain a 49% ownership interest in Altera, preserving its ability to participate in the company’s future growth while refocusing Intel’s core operations and strengthening its financial position.

The transaction, which is expected to close in the second half of 2025 subject to customary regulatory approvals, is anticipated to result in the deconsolidation of Altera’s financial results from Intel’s consolidated statements.

The deal comes amid a larger industry context in which FPGAs play a vital role in high-performance computing, communications, industrial, aerospace, and military applications, as well as rapidly expanding sectors such as AI, robotics, and data centers.

Altera, known for its scalable FPGA architecture and robust toolchain, reported revenues of $1.54 billion in Fiscal Year 2024, with a GAAP gross margin of $361 million and a GAAP operating loss of $615 million.

On a non-GAAP basis, Altera posted a gross margin of $769 million and operating income of $35 million.

Raghib Hussain Appointed as New CEO Amid Strategic Realignment

As part of the transaction, Altera will see a leadership transition, with Raghib Hussain appointed as Chief Executive Officer effective May 5, 2025.

Hussain brings significant industry experience from his previous roles as President of Products and Technologies at Marvell and Chief Operating Officer at Cavium, which he co-founded.

He succeeds Sandra Rivera, who has had a notable 25-year career at Intel.

Intel CEO Lip-Bu Tan commented, “Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure, and strengthening our balance sheet.

Altera is positioned to accelerate in the fastest-growing segments of the FPGA market, and with Silver Lake’s partnership, we anticipate further innovation and value creation.”

Kenneth Hao, chairman and managing partner of Silver Lake, emphasized the firm’s intent to bolster Altera’s technology leadership and support aggressive investment in emerging AI-driven markets.

The operational independence afforded by the deal is expected to enable Altera to rapidly innovate and capture new market opportunities, particularly as AI adoption transforms compute requirements across industries.

According to the Report, Intel will remain a strategic partner, continuing to provide U.S.-based foundry services and maintaining collaborative relationships with key customers.

Financially, Intel expects the divestiture to improve its expense structure and balance sheet while providing ongoing exposure to Altera’s prospective growth.

The deal underscores an industry trend toward specialization and agile, focused companies driving innovation in critical semiconductor niches.

Morgan Stanley & Co. LLC served as financial advisor to Intel in connection with the transaction.

The companies have issued cautionary statements regarding forward-looking projections, citing standard uncertainties around deal completion, regulatory approval, and market dynamics.

With more than 40 years of innovation in programmable logic, Altera is poised to leverage its new independence to advance FPGA-based solutions for AI, edge computing, and beyond, driving the next phase of semiconductor advancement.

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