Technology investment firm Silver Lake has agreed to acquire a 51 percent stake in Intel’s Altera business, which makes pure-play field programmable gate array, or FPGA, products.
In addition to the transaction, Intel said Monday that tech executive Raghib Hussain will assume the role of Altera’s CEO on May 5.
Focusing on Core Business
The deal values Altera at $8.75 billion and is expected to be completed in the second half of 2025, subject to customary closing conditions.
Upon the deal’s closing, Intel will own the remaining 49 percent of the Altera business, enabling it to focus on its core business while contributing to Altera’s future success.
“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” said Intel CEO Lip-Bu Tan. “Altera continues to make progress repositioning its product portfolio to participate in the fastest growing and most profitable segments of the FPGA market.”
Morgan Stanley & Co. acted as Intel’s financial adviser in the transaction.
Raghib Hussain’s Career Background
Hussain will succeed Sandra River, a 25-year Intel veteran, as chief executive of Altera in May.
He will join Altera from Marvell, where he was president of products and technologies. Before joining Marvell in 2018, Hussain was chief operating officer of Cavium, which he co-founded.
He held engineering positions at Cisco and Cadence and helped establish VPNet, an enterprise security company.
“Raghib is a superb executive we selected to lead the business forward based on his vast industry experience and proven track record of success,” said Tan.
Hussain said he was excited to lead Altera on its journey to becoming the world’s top provider of FPGA platforms.
“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,” he added.
What Does Altera Do?
Altera provides programmable hardware, software and development tools for communications, industrial, data center, aerospace, military, government and emerging markets such as AI, edge and robotics. It has been advancing FPGA innovation for over four decades.
The business recorded $1.4 billion in revenues, a GAAP gross margin of $361 million and a GAAP operating loss of $615 million in fiscal year 2024.
