Intel axes Altera CEO as it sells 51% to Silver Lake
Intel has sold 51% of Altera to Silver Lake and replaced CEO Sandra Rivera with former Cavium and Marvell exec Raghib Hussain. Intel acquired the FPGA company in 2015 for $17 billion, but the Silver Lake transaction values it at only $8.75 billion. The synergies between FPGAs and data-center microprocessors never appeared. Nor did the synergies between Altera’s products and Intel’s manufacturing might, which began its downward slide after the two combined. Meanwhile, investment in the Altera product line languished. More recently, the catch-all industrial semiconductor market, telecom market, and China market—major FPGA segments—have faced cyclical and geopolitical headwinds. Thus, it’s a tough time for Altera to spin out, but Intel needs cash and operational focus. Factoring in the above along with Intel’s acquisition track record, 50% value loss isn’t bad.
