Intel Corp (NASDAQ:INTC, ETR:INL) shares moved higher in early trade on Monday after the company announced the sale of a 51% stake in its programmable chip unit Altera to private equity firm Silver Lake, valuing Altera at $8.75 billion.
Intel will retain a 49% stake in Altera.
“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” Intel CEO Lip-Bu Tan said.
“We look forward to partnering with Silver Lake upon closing of the transaction, as their industry expertise will help to accelerate Altera's efforts and unlock additional economic value for Intel.”
Kenneth Hao, Silver Lake chairman and managing partner, described the investment as a “one-in-a-generation opportunity.”
“Together with Raghib, we will be focused on strengthening Altera’s technology leadership position and investing in emerging AI-driven markets such as edge computing and robotics,” Hao said.
Shares of Intel added 5% on Monday morning in New York.