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Intel to spin out cyber security unit, sell stake running a business to TPG | Cyberops

Intel to spin out cyber security unit, sell stake running a business to TPG

By Chandan Singh 0 Comment September 19, 2016

Intel and TPG will be co-owners of McAfee Intel and TPG to co-own McAfee Intel said it would spin out its cyber security division, formerly known as McAfee, and sell a majority stake in it to investment firm TPG for $3.1 billion in cash.

TPG will own 51 percent of the new entity, valuing the complete company at $4. 2 billion including financial debt.

Intel, which bought The security software for $7. 7 billion dollars in 2011, will maintain a 49 percent risk in the industry.

The deal ceases a failed effort by Intel to stake away a major position in the computer security business. During the time of the acquisition, Intel spoke of integrating The security software security technology into the chips, but little arrived of those plans.

Intel executives at the time also said they wished the acquisition would give it some the growing business of protecting companies from superior espionage, but newer players such as Mandate, now an device of FireEye, came to dominate that business.

In the same time, computer growth slowed, eroding the traditional McAfee customer base’s potential.

The device, re branded as Intel Security Group in 2014, will revert to the McAfee brand name following the closing of the deal, expected in the second quarter of 2017.

McAfee’s founder, John McAfee, was for a time away from home|out and about from a murder investigation in Belize and is a pariah in the industry. This individual recently sued Intel to return the right to use his name.

Chirs Young, Intel Security’s basic manager, will be called chief executive of the new company.

Intel Security’s earnings rose 11 percent to $1.1 billion dollars through the first fifty percent of this season, the company said in a press release.

TPG, which is making a $1. 1 billion collateral investment in the organization, first approached Intel’s board about a potential transaction for McAfee around a 12 months ago, sources familiar with the matter said.

TPG also led a $120 million investment round for security startup Tanium previous year and was the lead investor in a $100 million funding circular in internet security company Zscaler.

Source: cnbc

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