Intel Sells Controlling Interest in Altera to Silver Lake

April 17, 2025

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Intel this week announced that it has entered into a definitive agreement to sell 51 percent of Altera to Silver Lake, a private equity firm that's been involved in Dell, AirBnB, and many other technology deals for more than 15 years. But what does it mean?

According to the announcement from Intel, the transaction values Altera at $8.75 billion, which is about half of the $17 Billion Intel paid for Altera 10 years ago. The deal seems to solidify Intel's intent to separate from Altera, which has been rumored since the beginning of the year. It sets Altera up for operational independence under the new controlling interest, and does make th ecompany the largest pure-play FPGA semiconductor solutions company.

Intel will own the remaining 49 percent of the Altera business, as of now, according tothe release.

Intel simultaneously announced that Raghib Hussain will succeed Sandra Rivera as CEO of Altera, to be effective May 5. Rivera was only at the help for just over a year, but has had a long leaderhsip career at Intel. Hussain joins Altera from his previous role as president of Products and Technologies at Marvell.

“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” said Lip-Bu Tan, CEO, Intel. “Altera continues to make progress repositioning its product portfolio to participate in the fastest growing and most profitable segments of the FPGA market. We are grateful for Sandra’s strong leadership and lasting impact throughout her 25-year Intel career and wish her continued success as she begins a new chapter. Raghib is a superb executive we selected to lead the business forward based on his vast industry experience and proven track record of success. 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.”

“This investment represents a once-in-a-generation opportunity to invest in a scale leader in advanced semiconductors. Together with Raghib, we will be focused on strengthening Altera’s technology leadership position and investing in emerging AI-driven markets such as edge computing and robotics,” said Kenneth Hao, chairman and managing partner of Silver Lake. “We look forward to working closely with Intel as a strategic partner who will continue to provide U.S.-based foundry services and complementary engagement with customers.”

“I am excited to lead Altera in its next chapter, and this milestone with Silver Lake furthers Altera’s journey to be the world's No. 1 FPGA solutions provider,” said Hussain. “Backed by Silver Lake’s strong track record and now with clarity of focus as an independent company, Altera is well-positioned to build on its momentum and deliver breakthrough FPGA-based solutions that are shaping the future of compute driven by AI. I am grateful for the impact Sandra has made and the team she has built as we begin Altera’s next phase of growth.”

All of these hopeful quotes aside, this news looks like a much needed cash infusion for Intel, perhaps a change of direction for Altera, and perhaps an end to some instability for both. We'll be watching closely. 

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 Fiscal Year 2024, Altera generated revenues of $1.54 billion, GAAP gross margin of $361 million and GAAP operating loss of $615 million. Altera’s Fiscal Year 2024 non-GAAP gross margin was $769 million and non-GAAP operating income was $35 million. Reconciliations between the GAAP and non-GAAP measures are provided below. Morgan Stanley & Co. LLC acted as financial advisor to Intel.