Silver Lake, Bain prepare to bid for stake in Intel’s Altera
Intel has started the process for the stake sale in its programmable chips unit Altera, which it acquired for nearly USD 17 billion in 2015. The deal could provide Intel with a much-needed cash boost.
Silver Lake and Bain Capital are among the potential suitors that may compete to acquire a minority stake in Intel’s programmable chips business Altera, according to a Reuters report.
Intel, which had acquired Altera for nearly USD 17 billion in 2015, has already taken steps to spin Altera out as a separate company.
The struggling chipmaker has started the process for the stake sale in the unit in recent weeks, and talks are at an early stage, sources told Reuters. The potential transaction could provide Intel with a much-needed cash boost.
Private equity firm Francisco Partners is likely to be among the bidders, the Reuters report says.
For the quarter ended September 30, Altera grew 14% sequentially, posting revenue of USD 412 million.
“We remain focused on selling a stake in Altera on a path to its IPO in the coming years,” Intel CEO Pat Gelsinger said during a recent post-earnings conference call. “To that end, we have begun discussions with potential investors and expect to conclude in early 2025.”
California-based Altera makes programmable chips that can be repurposed for several applications such as processing videos and uses in telecommunications equipment.
Once the world’s leading chipmaker, Intel ceded its advantage to rivals like TSMC and Nvidia, failing to capitalize on an AI boom.
Intel and the US government are reportedly in talks to finalize a USD 8.5 billion in direct funding for the chipmaker.
In August, the tech giant announced it would cut 15% of its total workforce, or 15,000 jobs worldwide and reduce costs by over USD 10 billion.
