Intel's Altera: Potential $17B Minority Stake Sale Amidst Financial Pressures
Intel is currently looking to sell a minority stake in its Programmable Solutions Group, Altera, with potential buyers such as Silver Lake and Bain Capital preparing to make a move, according to a Reuters report. Altera, a market leader in the FPGA space and the inventor of the world's first programmable logic device, was acquired by Intel for nearly $17 billion in 2015 with the expectation that it would help expand Intel's presence in the Internet of Things market.
Intel is currently looking to sell a minority stake in its Programmable Solutions Group, Altera, with potential buyers such as Silver Lake and Bain Capital preparing to make a move, according to a Reuters report. Altera, a market leader in the FPGA space and the inventor of the world's first programmable logic device, was acquired by Intel for nearly $17 billion in 2015 with the expectation that it would help expand Intel's presence in the Internet of Things market.
However, with Intel facing financial pressures, Altera has become a business that can be split and sold.
The report, citing sources, indicates that Intel has initiated the process of spinning off Altera into an independent company and has started preliminary work on the sale of Altera shares in recent weeks. Negotiations are still in the early stages, and Intel is preparing to receive initial bids from potential buyers in the coming weeks.
Sources further emphasize that, in addition to Silver Lake and Bain Capital, private equity firm Francisco Partners has also expressed interest in acquiring a stake in Altera and could be one of the bidders. Regarding the sale of Altera, Intel is hoping for a price that is roughly equivalent to what it paid in 2015. It is currently unclear how much of Altera's shares Intel plans to sell, but any transaction is expected to be worth billions of dollars.
