Intel to spin off McAfee in $4.2 billion private equity deal

Intel to sell controlling share of its security division to TPG

McAfee

Intel is selling a majority stake in its security arm to private equity company TPG, valuing the division at $4.2 billion.

Five years after buying McAfee, which became Intel Security, the chipmaker will sell the division off, with TPG buying a 51% controlling share.

The standalone company, which will be jointly owned by Intel and TPG, will once again be named McAfee, and the deal will generate $3.1 billion for Intel.

The private equity group will invest another $1.1 billion to ensure McAfee can stand on its own two feet once more.

Advertisement
Advertisement - Article continues below

Brian Krzanich, CEO of Intel, reassured customers that security will continue to be an important facet of its chips as it pushes into the IoT space.

He added: "As we collaborate with TPG to establish McAfee as an independent company, we will also share in the future success of the business and in the market demand for top-flight security solutions, creating long-term value for McAfee's customers, partners, employees and Intel's shareholders. Intel will continue our collaboration with McAfee as we offer safe and secure products to our customers."

TPG co-founder Jim Coulter added: "We believe that McAfee will thrive as an independent company. With TPG's investment, along with continued support from Intel, McAfee will sharpen its focus and become even more agile in its response to today's rapidly evolving security sector."

TPG decided to buy the stake in Intel Security as cyber attacks increase in volume and as the threat they pose to enterprises increases, with dozens of data breaches regularly reported each year.

"Given McAfee's leading global market position, loyal customer base, and trusted technology, we see a compelling opportunity to invest in a highly-strategic platform that is growing consistently and addressing significant and evolving market demand," said Bryan Taylor, partner at TPG.

In an open letter to Intel Security's stakeholders, CEO Chris Young called employees "our most important strategic asset", and said the division's strategy has not changed in aiming to deliver more automated and orchestrated security tools.

He added: "And, with this move, we will create the ideal company structure to position McAfee for enhanced focus, innovation and growth."

The transaction is expected to close in the second quarter of 2017.

Featured Resources

The IT Pro guide to Windows 10 migration

Everything you need to know for a successful transition

Download now

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Software-defined storage for dummies

Control storage costs, eliminate storage bottlenecks and solve storage management challenges

Download now

6 best practices for escaping ransomware

A complete guide to tackling ransomware attacks

Download now
Advertisement

Recommended

Visit/security/354156/google-confirms-android-cameras-can-be-hijacked-to-spy-on-you
Security

Google confirms Android cameras can be hijacked to spy on you

20 Nov 2019

Most Popular

Visit/cloud/microsoft-azure/354230/microsoft-not-amazon-is-going-to-win-the-cloud-wars
Microsoft Azure

Microsoft, not Amazon, is going to win the cloud wars

30 Nov 2019
Visit/mobile/mobile-phones/354273/pablo-escobars-brother-launches-budget-foldable-phone
Mobile Phones

Pablo Escobar's brother launches budget foldable phone

4 Dec 2019
Visit/network-internet/wifi-hotspots/354283/industrial-wi-fi-6-trial-reveals-blistering-speeds
wifi & hotspots

Industrial Wi-Fi 6 trial reveals blistering speeds

5 Dec 2019
Visit/hardware/354237/five-signs-that-its-time-to-retire-it-kit
Sponsored

Five signs that it’s time to retire IT kit

29 Nov 2019