Shares of Intel (INTC) surged Monday morning after the chipmaker said it agreed to sell 51% of its programmable chip business Altera to private equity firm Silver Lake.

The deal values Altera at $8.75 billion, and will leave Intel with the remaining 49% ownership stake, the companies said Monday. Intel said that Raghib Hussain will be CEO of Altera, effective May 5, joining the company from his role as president of Products and Technologies at Marvell (MRVL).

“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.

The companies expect the deal to close in the second half of this year. Altera's results will be removed from Intel's quarterly consolidated financial statements once the deal is closed. The unit recorded revenue of $1.54 billion and adjusted operating income of $35 million in fiscal 2024.

The news follows 澳洲幸运5官方开奖结果体彩网:speculation of a possible deal for a staꦉke in Altera and other parts of Intel's business earlier this year.

Intel shares were up about 6% in recent trading. The chipmaker is set to report first-quarter results after the market closes on April 24.