Intel has announced a strategic investment deal with Silver Lake, where Silver Lake will acquire 51% of Intel's Altera business. This deal values Altera at $8.75 billion and marks a significant step in Altera’s evolution into an independent company. Intel will retain 49% ownership, allowing it to benefit from Altera's future growth while focusing more on its core operations.
Key Details of the Deal:
- Altera will now be the largest pure-play FPGA (Field Programmable Gate Array) company, positioning itself strongly in markets driven by AI and edge computing.
- Raghib Hussain will succeed Sandra Rivera as the CEO of Altera starting May 5, 2025. He brings extensive industry experience, having previously worked at Marvell and Cavium.
- The deal will allow Altera to scale up its innovation in FPGA technology, with applications spanning across industrial, communications, data centers, military, aerospace, and emerging sectors like AI, edge, and robotics.
Future Focus:
- The partnership aims to strengthen Altera's technology leadership, particularly in AI-driven markets, including edge computing and robotics.
- The deal also ensures that Intel continues its partnership with Altera, providing U.S.-based foundry services.
The transaction is expected to close in the second half of 2025, subject to regulatory approval. Intel expects to deconsolidate Altera’s financial results from its own once the deal closes.
This strategic move is part of Intel's broader efforts to streamline its operations and focus more on its core business, while Altera gains operational independence to drive growth and innovation.
Related News