Intel to sell 51% of Altera business to Silver Lake, values Altera at $8.75B

Intel (INTC) announced that it has entered into a definitive agreement to sell 51% of its Altera business to Silver Lake. The transaction, which values Altera at $8.75B, establishes Altera’s operational independence and makes it the largest pure-play field programmable gate array semiconductor solutions company. Intel will own the remaining 49% of the Altera business. Intel also announced that Raghib Hussain will succeed Sandra Rivera as chief executive officer of Altera, effective May 5. He joins Altera from his previous role as president of products and technologies at Marvell (MRVL). The transaction is expected to close in the second half of 2025, subject to customary closing conditions. Upon closing, Intel expects to deconsolidate Altera’s financial results from Intel’s consolidated financial statements. In FY24, Altera generated revenues of $1.54B, GAAP gross margin of $361M and GAAP operating loss of $615M. Altera’s FY24 non-GAAP gross margin was $769M and non-GAAP operating income was $35M. Reconciliations between the GAAP and non-GAAP measures are provided below.