Intel has decided to transfer the majority shares of the subsidiary of Altera, which operates in the programmable chip, to Silver Lake, a private capital company. According to a statement, 51 percent of Altera’nın hand changing hands, Intel remaining 49 percent will continue to ownership. This development will enable Altera to gain an operational independent structure. The total value of the agreement is 8.75 billion dollars.
Intel, in his official announcement, stressed that this sale is the goal of strengthening the balance sheet balance, simplifying the cost structure and increasing the focus. The company’s CEO Lip-This Tan said that this strategic decision was also taken to respond more effectively to the high growth potential in the FPGA market. Intel also said that Altera continues to direct the product portfolio towards areas offering higher profitability. Altera’s management seat will be transferred to Raghib Hussain as of May 5th.
He bought Intel Altera in 2015
Altera was founded in 1983 by experienced names of the sector and is known for its innovations in the field of FPGA. The chips it develops are widely used in different sectors; In particular, communication systems, robot technologies and artificial intelligence applications are one of these usage areas. The flexibility and republicanness of the FPGA chips make them attractive in solving many engineering problems. Intel’s interest in this field is essentially due to this technological potential.
Intel added Altera to a $ 16.7 billion agreement in 2015 and then formed the “Program Solutions Group” (PSG) business unit. However, last year, it was announced that the PSG would be turned into a separate company and that this structure would be offered to the public in the coming years. Despite this transformation, Intel also revealed the intention of remaining the company’s majority shareholder. This strategic distinction has progressed in parallel with the growth rate in the FPGA market and the interest of investor.
According to market research, the growth of the FPGA sector seems to gain further acceleration in the coming years. The global market, which was 12.1 billion dollars in 2023, is expected to reach $ 25.8 billion as of 2029. These predictions require companies such as Altera to act more agile with their independent decision -making mechanisms. Intel’s partial disposal of its shares can also be considered as a strategic response to this need.
In the financial year of 2024, it was announced that Altera earned $ 1.54 billion income. This figure clearly shows the company’s stability in the FPGA field and its effectiveness in the market. In spite of everything, flexible business models and independent governance structures are of great importance for sustainable growth in this sector where competition increases rapidly. Silver Lake’s introduction in this sense can enable Altera to make faster decisions in technology development and investment processes.
Silver Lake is a capital company known for its strategic investments in the technology sector. Previously, Dell Technologies and Broadcom often made a name for himself thanks to his partnerships. These partnerships can be an important signal for Altera’s future growth journey. Intel’s remaining a minority shareholder in this process suggests that it can maintain its technical cooperation if necessary.