Latest news with #RaghibHussain
Yahoo
16-04-2025
- Business
- Yahoo
'Once-in-a-generation opportunity': Silver Lake may have struck gold with controlling majority in chip designer once worth almost $17bn
When you buy through links on our articles, Future and its syndication partners may earn a commission. Intel sells 51% of Altera to Silver Lake for $4.46bn, valuing business at $8.75bn Altera gains independence as largest pure-play FPGA semiconductor company Raghib Hussain named new CEO as Intel shifts its strategic focus Intel, now under the leadership of new CEO Lip-Bu Tan, has been facing a number of challenges in recent years, to the point where it was rumored the tech giant could sell off its chip-design and marketing business or spin off its chip plants. Whether that will happen in the future remains to be seen, but Intel says it has signed a definitive agreement to sell 51% of its Altera business to Silver Lake for $4.46 billion. This values the company at $8.75 billion, which is quite a drop from nearly $17 billion Intel paid for it in 2015. Altera has been active in FPGA (field programmable gate array) development for over four decades, providing programmable semiconductor solutions for use in industries like communications, aerospace, government, data centers, and industrial automation. The sale gives Altera operational independence and establishes it as the largest pure-play FPGA semiconductor company in the world. Intel will keep a 49% stake, allowing it to remain involved while shifting its focus more squarely to its core operations. The transaction is expected to close in the second half of 2025, pending customary closing conditions. Once finalized, Intel plans to deconsolidate Altera's financials. In 2024, Altera reported $1.54 billion in revenue, a GAAP operating loss of $615 million, and non-GAAP operating income of $35 million. Raghib Hussain, previously president of Products and Technologies at Marvell, will succeed Sandra Rivera as CEO of Altera on May 5, 2025. 'This investment represents a once-in-a-generation opportunity to invest in a scale leader in advanced semiconductors,' said Kenneth Hao, chairman and managing partner of Silver Lake. '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. 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.' Lip-Bu Tan described the agreement as a strategic step forward. 'Today's announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,' he said. '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.' Intel debuts super-fast AI chips to match AMD in the race for supremacy Intel's former CEO invests in hardware startup that wants to make Nvidia obsolete How Intel is bringing AI advantage and unrivaled security to every industry Sign in to access your portfolio
Forbes
16-04-2025
- Business
- Forbes
Intel Cancels IPO Carveout Of Altera
(Photo by) On April 14, 2025, Intel Corp (NASDAQ: INTC, $19.85, Market Capitalization: $86.6 billion), a leading technology company, announced that it has entered into a definitive agreement to sell 51% of its Altera business to Silver Lake, a global leader in technology investing. (for more information, visit The transaction, which values Altera at $8.75 billion, establishes Altera's operational independence and makes it the largest pure-play FPGA (field programmable gate array) semiconductor solutions company. Altera offers a proven and highly scalable architecture and tool chain and is focused on driving growth and FPGA innovation to meet the demands and opportunities of an AI-driven market. Intel will own the remaining 49% of the Altera business, enabling it to participate in Altera's future success while focusing on its core business. The transaction is expected to close in the 2H25, subject to customary closing conditions. Upon closing of the transaction, Intel expects to deconsolidate Altera's financial results from Intel's consolidated financial statements. Morgan Stanley & Co. LLC acted as financial advisor to Intel. Earlier on October 3, 2023, Intel had announced its intention to separate its Altera (Programmable Solutions Group) operations into a standalone business and intended to conduct an IPO for the Altera business and explore opportunities with private investors to accelerate the business's growth, with Intel retaining a majority stake. Furthermore, Intel also announced that Raghib Hussain will succeed Sandra Rivera as chief executive officer of Altera, effective May 5, 2025. Hussain is a highly accomplished and visionary technology executive with strong business acumen and engineering credentials. He joins Altera from his previous role as president of Products and Technologies at Marvell. Prior to joining Marvell in 2018, Hussain served as chief operating officer of Cavium, a company he co-founded. Prior to Cavium, Hussain held engineering roles at both Cisco and Cadence and helped found VPNet, an enterprise security company. Intel Corp Price Performance Carve-Out Details and Top 5 Shareholders Valuation and RecommendationWe have dropped coverage on INTC as the planned IPO transaction has been canceled. Key Data Company DescriptionIntel Corp (Parent) Founded in 1968, Intel Corp (NASDAQ: INTC) is the world's largest logic chipmaker. It designs and manufactures microprocessors for the global personal computer and data center markets. Intel pioneered the x86 architecture for microprocessors. It was the prime proponent of Moore's law for advances in semiconductor manufacturing, though the firm has recently faced manufacturing delays. While Intel's server processor business has benefited from the shift to the cloud, the firm has also been expanding into new adjacencies as the personal computer market has stagnated. These include areas such as the Internet of Things, artificial intelligence, and automotive. Intel has been active on the merger and acquisitions front, acquiring Altera, Mobileye, and Habana Labs to bolster these efforts in non-PC arenas. The company reported a total revenue of $53.1 billion in FY24. Altera (Carve-Out) - Cancelled Acquired by Intel for $16.7 billion in 2015, Altera is a leading supplier of programmable hardware, software, and development tools that empower designers of electronic systems to innovate, differentiate, and succeed in their markets. With a broad portfolio of industry-leading FPGAs, SoCs, and design solutions, Altera enables customers to achieve faster time-to-market and unmatched performance in applications spanning data centers, communications, industrial, automotive, military, aerospace, and government, as well as emerging markets such as AI/edge and robotics. Its broad portfolio of programmable semiconductor solutions, software and development tools delivers the reliability and flexibility needed to accelerate customer technology innovation. For FY24, Altera generated revenues of $1.54 billion, a GAAP gross margin of $361 million and a 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.
Yahoo
15-04-2025
- Business
- Yahoo
Intel to sell majority stake in Altera to Silver Lake
Tech giant Intel has agreed to sell 51% of its programmable chips unit, Altera, to technology investment firm Silver Lake. This transaction values Altera at $8.75bn, with Intel retaining a 49% ownership stake in the unit. In March 2024, Intel launched Altera as its stand-alone field-programmable gate array (FPGA) company. Altera provides programmable solutions for industrial, communications, data centre, military, aerospace, and government sectors, as well as emerging markets like AI/edge and robotics. Its portfolio includes semiconductor solutions, software, and development tools that enhance customer technology innovation. Intel CEO Lip-Bu Tan said: 'Altera continues to make progress repositioning its product portfolio to participate in the fastest growing and most profitable segments of the 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.' Intel will receive approximately $3.4bn in cash from Silver Lake as part of the deal, according to Bloomberg. A consortium of banks, including Barclays, Bank of Montreal, Citigroup, Deutsche Bank, KKR Capital Markets and Royal Bank of Canada, is providing Silver Lake with $2bn in debt for the acquisition, the publication said citing sources. Subject to customary closing conditions, the deal is anticipated to conclude in the second half of 2025. In conjunction with the deal, Intel announced that Raghib Hussain will succeed Sandra Rivera as CEO of Altera, effective 5 May 2025. Hussain joins Altera from Marvell, where he served as president of Products and Technologies. Silver Lake chairman and managing partner Kenneth Hao said: '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. 'We look forward to working closely with Intel as a strategic partner who will continue to provide US-based foundry services and complementary engagement with customers.' "Intel to sell majority stake in Altera to Silver Lake" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
14-04-2025
- Business
- Yahoo
Intel Just Sold Half of Altera--Here's Why Wall Street Is Cheering
Intel (NASDAQ:INTC) just made its boldest move yet in a turnaround play that's been years in the making. The chipmaker is handing over 51% of its Altera unit to private equity giant Silver Lake in a deal that values the business at $8.75 billionroughly half of what Intel paid for it back in 2015. While Intel keeps a 49% stake, this signals a clear shift: it's trimming the fat to get leaner and meaner. The programmable chip business, now under new CEO Raghib Hussain from Marvell, is the first major carve-out under new Intel chief Lip-Bu Tan, who's promised to sharpen focus and fix the company's sluggish momentum. Warning! GuruFocus has detected 7 Warning Signs with INTC. Investors took noticeshares of Intel popped 4% in the premarket trading at 9.25am after the announcement. And for good reason. After years of losing ground to rivals like Nvidia in AI accelerators, Intel is finally cutting loose what doesn't serve the mission. The Altera sale isn't just about cashit's about signaling a change in mindset. No more sprawling empire with scattered bets. Tan is doubling down on custom semiconductors, streamlining operations, and rebuilding from the core. The sale also helps pad Intel's balance sheet while opening the door for deeper partnerships or potential IPOs down the line. This isn't a full-blown comeback yet, but it's a necessary reset. If Intel wants back in the AI race, it needs to move faster, think sharper, and stay focused. Offloading Altera won't solve everythingbut it clears the deck for what could be Intel's next act. The market will be watching closely to see if this is just financial engineeringor the start of real engineering-led growth. This article first appeared on GuruFocus.
Yahoo
14-04-2025
- Business
- Yahoo
Intel To Offload 51% Of Altera Business To PE Firm Silver Lake
On Monday, Intel Corp (NASDAQ:INTC) announced plans to sell 51% of its Altera business to Silver Lake at a valuation of $8.75 billion. Intel will own the remaining 49% of the Altera business, enabling it to participate in Altera's future success while focusing on its core business. Intel also announced that Raghib Hussain will succeed Sandra Rivera as CEO of Altera, effective May 5. Taiwan Semiconductor Clocks Massive Q1 Revenue Growth Despite US Tensions The transaction will likely close in the second half of 2025, subject to customary closing conditions. The transaction establishes Altera's operational independence and makes it the largest pure-play FPGA (field programmable gate array) semiconductor solutions company. In fiscal 2024, Altera generated revenues of $1.54 billion, with an adjusted gross margin of $769 million and an adjusted operating income of $35 million. Intel agreed in 2015 to pay ~$17 billion for Altera, Bloomberg reported Monday. In 2024, Intel shared plans to explore selling a stake in Altera. Altera drew interest from firms, including Lattice Semiconductor Corp. However, the companies had valued Altera at $9 billion. Intel stock plunged 46% in the last 12 months as it failed to tap the shift to artificial intelligence accelerators akin to the likes of Nvidia Corp (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing Co (NYSE:TSM). Intel fired its chief Pat Gelsinger in 2024 after his turnaround plan to take on the likes of Taiwan Semiconductor failed to impress the board. Intel's new CEO, Lip-Bu Tan, recently shared the chipmaker's plans to spin off non-core assets and create new products to drive value. Taiwan Semiconductor is reportedly set to acquire a 20% stake in a new joint venture with Intel. The deal coincided with pressure from the White House and the Commerce Department to resolve Intel's ongoing manufacturing and customer service challenges. Intel has struggled to manufacture chips for external clients, which has led to delays and failed tests. Trump's plans to offer flexibility on tariff rates on imported semiconductors offered some respite to Intel stock on Monday. Price Action: INTC stock is up 5.13% to $20.75 at the last check on Monday. Read Next:Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? INTEL (INTC): Free Stock Analysis Report This article Intel To Offload 51% Of Altera Business To PE Firm Silver Lake originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
