Intel divests majority stake in Altera to Silver Lake for $8.75 billion
- Intel will sell a 51% stake of Altera to Silver Lake for $8.75 billion.
- The acquisition by Silver Lake is expected to close in the second half of the year.
- The move is part of Intel's strategy to focus on core areas and enhance financial stability.
In a significant corporate move, Intel Corporation, based in the United States, announced that it would be selling a majority stake of its Altera chip business to technology investment firm Silver Lake. This transaction is valued at $8.75 billion and represents an effort by Intel to streamline its operations and focus on core areas of growth. The announcement was made on a Monday, preceding the expected completion of the deal in the latter half of the year. Intel previously acquired Altera in 2015 for a substantial $16.7 billion, marking it as the largest acquisition in Intel's history at that time. The purpose of this acquisition was to penetrate chip markets that included sectors such as wireless technologies and automotive solutions. To further enhance the strategic direction of its operations, Intel officially spun Altera off as an independent company earlier in the year, paving the way for this latest divestment. The move comes as Intel CEO Lip-Bu Tan emphasized a commitment to sharpening the company's focus, lowering expenses, and strengthening its balance sheet. Since taking over the helm of Intel only a month prior to the announcement, Tan has set a course for more financially disciplined operations. He expressed optimism regarding the partnership with Silver Lake, highlighting the investment firm's industry expertise as critical for accelerating Altera's potential and unlocking additional value for Intel. In addition, the leadership at Altera will be transitioning, with Raghib Hussain set to succeed Sandra Rivera as the CEO beginning in early May. Following the announcement of the sale, Intel's stock prices saw a positive uptick of 3.2% shortly after the market opened. The broader technology sector benefited from market optimism that followed U.S. President Donald Trump's recent decision to exempt certain electronics from tariffs, enhancing investor sentiment within the tech industry.