Intel Sells 51% Stake In Altera To Silver Lake In $4.46B Deal As It Refocuses On Core Business Under New CEO Lip-Bu Tan

Intel Corp. (INTC) shares rallied 3% on Monday after the chipmaker announced it would sell 51% of its Altera business to Silver Lake.

The transaction values the Altera business at $8.75 billion, with an implied deal value of $4.46 billion. Intel will own the remaining 49% of the business, enabling it to “participate in Altera’s future success while focusing on its core business.”

The announcement comes when Intel is taking steps to reduce costs.

The transaction is expected to close in the second half of 2025. Once the deal is closed, Intel hopes to deconsolidate Altera’s financial results from its consolidated financial statements.

Altera is a supplier of programmable hardware, software, and development tools. In 2024, the company generated a revenue of $1.54 billion, a GAAP gross margin of $361 million, and a GAAP operating loss of $615 million.

The company also announced that tech executive Raghib Hussain will succeed Sandra Rivera as Altera CEO, effective May 5, 2025. Previously, Hussain worked as president of Products and Technologies at Marvell.

Before joining Marvell in 2018, Hussain served as chief operating officer of Cavium, a company he co-founded. Hussain has also held engineering roles at Cisco and Cadence and helped found VPNet, an enterprise security company.

Intel CEO Lip-Bu Tan said Altera continues to progress in repositioning its product portfolio to participate in the fastest-growing and most profitable segments of the field programmable gate array (FPGA) market.

“We look forward to partnering with Silver Lake upon closing of the transaction, as their industry expertise will help to accelerate Altera's efforts and unlock additional economic value for Intel,” he said.

Intel shares have gained 0.59% in 2025 but have lost over 43% in the past 12 months.

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