Intel (INTC, Financial) is progressing with the sale of its Altera programmable chip division, having narrowed down potential buyers. Private equity firms Francisco Partners, Silver Lake, and Lattice Semiconductor are among those advancing to the next bidding round. Apollo and Bain Capital have also shown interest. Intel plans to request formal bids by the end of January, though other buyers may still enter the fray, and a deal is not guaranteed.
Altera, specializing in low-power programmable chip design, was initially put up for sale by former CEO Pat Gelsinger. Despite leadership changes, Intel is committed to selling Altera, which it acquired in 2015 for about $17 billion. Current offers value Altera between $9 billion and over $12 billion, potentially leading to a financial loss for Intel.
Lattice Semiconductor, with a market cap of around $8 billion, may need additional financial support to fully acquire Altera. Intel's interim co-CEO, David Zinsner, mentioned ongoing discussions with external investors to find partners similar to those in previous transactions.
