Altera

Altera is one of the largest developers of ASIC (Programmable Logic Integrated Circuits)

2025: Silver Lake bought 51% of Altera from Intel

On April 14, 2025, Intel announced that it had entered into a final agreement to sell 51% of its Altera, a developer of user programmable gate arrays (FPGAs). The buyer was private equity firm Silver Lake.

As part of the deal, Altera is estimated at $8.75 billion. Thus, a 51 percent share could cost Silver Lake about $4.46 billion. Intel will continue to own the remaining 49% of Altera, which will allow the corporation to participate in the future development of this area, while focusing on its core business. Morgan Stanley & Co. LLC serves as a financial advisor to Intel. The transaction is expected to close in the second half of 2025 while obtaining the necessary regulatory approvals and meeting other standard conditions.

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Фото: Freepik

Intel also announced that Raghib Hussain will succeed Sandra Rivera as CEO of Altera on May 5, 2025. Hussey previously served as president of products and technology at Marvell, and prior to that served as chief operating officer at Cavium. In addition, he worked in engineering positions at Cisco and Cadence.

The Silver Lake deal is supposed to help accelerate Altera's business. In turn, Intel, in a difficult financial situation, expects to direct resources to the most valuable areas for itself. As Reuters emphasizes, Intel is going through one of the darkest periods in its history, which is partly due to a shift in corporate customer demand towards specialized AI accelerators. After closing the transaction, Intel intends to exclude Altera's financial results from its consolidated financial statements.^[1]

2015: Intel buys Altera for $16.7 billion

On June 1, 2015, Intel announced the purchase of Altera for $16.7 billion. Due to this deal, which at the time of its announcement is the largest in the history of the American processor giant, he expects to strengthen his position in the server and Internet of Things markets.

According to an official statement from Intel, the company will pay about $54 for Altera per share of the absorbed chipmaker. This is 11% more than the value of securities at the time of the termination of trading on May 29, 2015, and also 56% higher than on March 26, 2015 - the day before rumors about the merger of Intel and Altera first appeared in the press. Since then, until the announcement of the deal, quotes of the latter have steadily increased, despite the emergence of rumors about the termination of negotiations amid disagreements on the price issue.

With the purchase of Altera, Intel plans to strengthen its position in the server and IoT markets

Intel plans to close the takeover of Altera by the end of 2015 or no later than the first quarter of 2016. It was unanimously approved by the boards of directors of both companies, shareholders and regulators will still express their decisions. Some of them may be on the way to finalizing the sale of Altera - investors are worried about this, so the company's shares did not reach the level of Intel's offer after its announcement, USA Today notes.^[2]

Intel will pay the entire amount for the purchased chipmaker in cash and against the debt. As of March 28, 2015, the corporation's accounts accumulated $14 billion in cash and cash equivalents in the form of short-term investments. In addition, Intel had $8.2 billion in long-term investments. Intel expects an increase in profit and free cash flow from its acquisition of Altera in the first year since the deal closed.

Intel is going to use programmable logic integrated circuits developed by Altera in data center hardware. By doing this, Intel can strengthen the server business, which the corporation has one of the fastest growing and most profitable. In addition, the IT giant plans to use its technologies to improve Altera products and use them in IoT devices.

On December 28, 2015, Intel announced the completion of the acquisition of Altera Corporation, a supplier of programmable logic integrated circuit technology of the type. FPGA The deal will allow the corporation to expand its product range and offer new classes of solutions for rapidly growing segments of the data center markets and. Internet of Things

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