Intel to sell 20% stake in Austrian chip company

(Reuters) – Intel said on Wednesday it would sell one-fifth of its stake in IMS Nanofabrication to private equity firm Bain Capital in a deal valuing the Austrian producer of chipmaking tools at about $4.3 billion.

Intel’s stake sale of 20% was valued at $860 million, according to Reuters calculations.

IMS, which was acquired by Intel in 2015, makes equipment that are critical for companies that make chips.

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 said.

(Reporting by Akash Sriram and Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila and Shinjini Ganguli)

Source: https://finance.yahoo.com/news/intel-sell-20-stake-austrian-124253911.html