Intel spins out McAfee sell stake to TPG

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Intel spins out McAfee; Sell 51% share to TPG

Intel Corporation, an American multinational technology company known for its processor. It is announced that Intel spins out its cyber security division McAfee. Intel spins out McAfee and sell stake to investment firm TPG. The deal is finalized and Intel will get 3.1 billion USD in cash. TPG will own 51 percent of the new entity, valuing the entire company at $4.2 billion including debt. After the Intel spins out McAfee, will retain 49 percent ownership stake in the business. Intel’s security unit acquired McAfee in 7.68 billion USD in 2011. Intel wanted to create an integrated full stack security juggernaut but instead was caught in open water with shrinking PC sales and low margins.

The Key Highlights of Intel Spins out McAfee:

  • TPG and Intel to jointly invest in spin-out of Intel Security in a transaction valuing the business at $4.2 billion.
  • Intel to receive $3.1 billion in cash and retain 49 percent stake after completion of the transaction.
  • TPG to own 51 percent of the new company, which will be named McAfee.
  • Investment reflects TPG’s confidence in Intel Security’s industry-leading enterprise and consumer businesses, strong market position, and business momentum.
  • Positions new company as one of the world’s largest pure-play cybersecurity firms.
  • Intel senior vice president and Intel Security general manager Chris Young and existing management team to lead the new company following transaction close.

After this deal a new independent, jointly owned cybersecurity company will be formed. The new company called as McAfee. “Security remains important in everything we do at Intel and going forward we will continue to integrate industry-leading security and privacy capabilities in our products from the cloud to billions of smart, connected computing devices,” said Brian Krzanich, CEO of Intel. “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.” Jim Coulter, Co-Founder and Co-CEO of TPG said:

“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.”

Source: Intel’s Newsroom

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