Intel Corporation (NASDAQ:INTC) saw a 2.6% increase in its stock price during pre-market trading on Monday after Bloomberg News reported that the company is nearing the completion of a deal to sell a majority stake in its programmable chips division, Altera, to private equity firm Silver Lake Management.
This deal is part of Intel’s broader strategy to divest from non-core businesses, allowing it to streamline operations and focus more on its primary growth areas. The announcement could come as soon as this week.
Intel acquired Altera in 2015 for around $17 billion, adding its versatile chips—widely used in telecommunications networks—to the company’s portfolio. However, with other companies, such as Lattice Semiconductor Corp. and several buyout firms, expressing interest in Altera, Intel’s sale to Silver Lake could value the division at a considerably lower amount, with some estimates suggesting it could be worth as little as $9 billion.
This potential sale aligns with Intel’s 2024 plans to restructure its operations by offloading less critical assets. The divestment of Altera is expected to free up resources and capital, which Intel can redirect into its more profitable and strategic business areas.
