Compass Investments

– Catena, Monday, April 14, 2025 – Intel has agreed to sell its 51% stake in programmable chip maker Altera to the Silver Lake Foundation for $4.46 billion, to recoup losses from the sale of non-core assets.

The deal was announced on Monday. It values Altera at $8.75 billion, well below the $17 billion Intel paid in 2015. Intel will retain a 49% stake. The deal is expected to close in the second half of 2025. Altera will be led by Raghib Hussain, who will replace Sandra Rivera as CEO.

Since last year, Intel has been taking steps to spin off Altera into an independent division and has announced plans to partially sell the stake.

Today’s announcement demonstrates our commitment to increasing specialization, reducing costs and strengthening our balance sheet, said Intel CEO Lip-Bu Tan.

Earlier this month, Tan said Intel would divest non-core assets and create new products, including custom semiconductors, to better meet customer needs.

In recent years, Intel has lost market share to competitors and missed the transition to artificial intelligence gas pedals, now dominated by Nvidia.

Altera produces programmable chips used in applications ranging from telecommunications equipment to the military.

In 2024, Altera’s revenues totaled $1.54 billion, with an operating loss of $615 million.