Abu Dhabi’s MGX and Silver Lake acquire majority stake in Altera

Abu Dhabi-based MGX has joined as a co-investor in the Silver Lake-led acquisition of a 51 per cent stake in Altera from Intel Corporation. 

The transaction establishes Altera as the world’s largest independent, pure-play Field-Programmable Gate Array (FPGA) solutions provider.

The extent of MGX’s investment was not disclosed, but when Intel agreed to sell 51 per cent of Altera to private equity firm Silver Lake, the unit was valued at $8.75 billion.

MGX partners with Silver Lake in $8.75bn Altera acquisition from Intel

Silver Lake acquired the majority stake in Altera for an equity value of about $3.3 billion, according to a regulatory filing, reflecting debt financing and cash for the business.

Intel had paid nearly $17 billion for the company in 2015.

Intel will retain the remaining 49 per cent stake, reflecting both parties’ confidence in Altera’s growth and highlighting a partnership that will bring deep semiconductor expertise with a shared vision to accelerate Altera’s global leadership in programmable semiconductor solutions.

Omar Alismail, Chief Investment Officer, Semiconductors and Infrastructure, at MGX said in a statement: “Altera provides a foundational platform for next-generation computing. This is an opportunity to scale a company of such significance into a true global leader for the AI era. 

“In partnership with Silver Lake, we are accelerating next-generation technologies and ensuring Altera has the reach and innovation needed to power the digital future.”

The deal is expected to empower the company to accelerate innovation for customers and partners by providing software tools, development kits, IP and design service resources used to build complete FPGA solutions. Altera delivers a comprehensive, full-stack FPGA portfolio featuring industry-leading fabric, efficient performance, and easy-to-use, scalable software for customers and developers.

Altera’s advanced FPGA solutions, like its Agilex family of products, make AI more accessible by lowering entry costs while enhancing performance, reliability, and security. 

Kenneth Hao, Chairman and Managing Partner at Silver Lake, added: “Altera is uniquely positioned at the forefront of the FPGA industry and AI evolution. This investment reflects our confidence in Altera’s technology leadership, its commitment to deliver for customers, and its significant growth potential.

“We are proud to support CEO Raghib Hussain and the talented Altera team as they embark on this exciting next chapter, and we are delighted that MGX joins us as a partner.”