US-based semiconductor technology producer Intel is considering divesting up to $1bn in assets held by its corporate venturing unit, Intel Capital, Bloomberg reported on Friday citing people familiar with the matter.
Intel is working with financial services firm UBS to search for buyers for the stakes, which could be sold as a combined portfolio or in batches themed according to geography or sector, and private equity houses are likely to be interested, according to the sources.
The move follows a restructuring of Intel Capital in 2015. Long-time president Arvind Sodhani stepped down at the end of the year to be replaced by Wendell Brooks, president of mergers and acquisitions at Intel.
Speaking to Global Corporate Venturing in October concerning his plans, Brooks outlined a strategy that would entail Intel Capital making fewer but larger investments, saying: “It is still early days, but I think we will take slightly larger bets, with more of a leadership role in transactions as opposed to passive secondary roles.
“The portfolio may be somewhat smaller when looking back at it five years from now, but with larger bets on technology. This is my predisposition.”
Although no clues have been disclosed concerning the identity of the companies Intel Capital plans to exit, the unit has more than 300 portfolio companies listed on its website, spanning a range of IT-related sectors including big data, cybersecurity, hardware, internet of things (IoT) and wearables.
Some of the most valuable companies the unit holds a stake in include big data technology provider Cloudera, mobile payment service provider iZettle, e-signature company DocuSign, digital media company Hungama and IoT connectivity network Sigfox.