Intel agreed on Apr 14, 2025 to sell 51% of Altera to a Silver Lake affiliate at an $8.75 billion enterprise value

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

Intel agreed on Apr 14, 2025 to sell a majority interest in its Altera business to SLP VII Gryphon Aggregator, L.P., an affiliate of Silver Lake. The buyer was to take 51% of Altera's issued and outstanding common stock. The purchase price implied an enterprise value of $8.75 billion for Altera, and an enterprise value counts the shares plus the debt, less the cash. The purchase price was expected to result in net cash proceeds of approximately $4.40 billion to the sellers, Intel and Intel Americas, after adjustments for cash, debt and debt-like items, working capital, transaction expenses and other items. Intel reported the agreement in an 8-K, the current report a US-listed company files when an event matters to its shareholders, filed on Apr 17, 2025 under item 1.01, entry into a material definitive agreement, and item 8.01, other events.1^,2^,3^,4^,5^,6^,7^,8

The filing said $1.00 billion of the expected cash proceeds would be payable in two installments of $500 million each. The first was payable on Dec 31, 2026 and the second on Dec 31, 2027, each subject to acceleration. Intel could receive up to $250 million more if triggering events tied to a sale of the partnership that would hold Altera's shares, or to an initial public offering, occurred and the buyer's multiple of return on its investment exceeded 3.0x. Subject to limitations, Intel was also entitled to a $400 million termination fee if the buyer failed to close because of what the agreement defined as a financing failure. The fee was also due, in certain limited circumstances, if the buyer breached its covenants on regulatory approvals and that caused the failure of regulatory approval or a regulatory block.9^,10^,11^,12^,13^,14^,15

At the closing, the sellers and the buyer were to contribute their Altera shares to a newly formed partnership in exchange for interests in it. Intel was also to amend its Dec 19, 2024 foundry manufacturing customer agreement with Altera, under which it would continue to provide semiconductor wafer manufacturing services; the agreement would remain in effect through 2040 unless terminated under its terms.13^,16^,17

The sale was subject to customary conditions, including regulatory clearances, approvals or consents in certain jurisdictions. Either side could terminate if the closing had not occurred on or before Aug 12, 2025, a date that extended automatically in circumstances the agreement set out until Apr 14, 2026. Banks including Barclays, Citi and RBC Capital Markets had committed up to $2.00 billion of debt financing to a subsidiary of the buyer.18^,19^,20^,21

Our records hold the text of this one 8-K, with items 1.01, 8.01 and 9.01, and not the filing's other exhibits. In that document, a premium over a market price appears in 0 sentences, an equity value in 0 and an enterprise value in 1.22^,23