Intel Corp. said it has agreed to sell roughly 20% of its stake in IMS Nanofabrication to Bain Capital in a deal that valuing the Austria company at about $4.3 billion.
Intel’s stake sale of 20% was valued at $860 million, Reuters reported.
The transaction is expected to close in the third quarter, Intel said in a statement. IMS will operate as a standalone unit and will continue to be led by CEO Elmar Platzgummer, the statement read.
It has delivered a significant return on investment to Intel while growing its workforce and production capacity by four times, Intel said.
Bain Capital’s investment in IMS will put it in a position to capture significant market share for its tools that are being widely adopted by chipmakers, Intel added
Intel first invested in the Austria company in 2009 and later acquired the business in 2015.
IMS supplies equipment that most of world’s largest semiconductor manufacturers rely on to produce chips.
Intel’s shares dropped less than 1% in premarket trading in New York.