Intel has sold a 51 percent stake in McAfee to TPG for USD 3.1 billion, with the total business valued at USD 4.2 billion. The unit will be spun out of Intel Security, keep its McAfee name and operate as an independent cybersecurity company. Chris Young, Intel senior VP and Intel Security general manager, will lead the new company. Intel will retain 49 percent of the company after completion of the transaction, expected near the second quarter, subject to regulatory and other closing conditions.
Intel bought McAfee in 2010 for USD 48 per share cash, or a total of USD 7.68 billion.
Under the deal, TPG will invest an additional USD 1.1 billion into the company, to help drive growth and help it go forward as a standalone business. Intel and TPG will then position McAfee as a strong independent company with access to significant financial, operational and technology resources.
McAfee will continue with the strategy unveiled last year by Intel Security, refocusing the business on endpoint and cloud as security control points, as well as actionable threat intelligence, analytics and orchestration. In an open letter to Intel Security stakeholders, Chris Young wrote that the company will continue to “focus on solving the unique demands of customers in the dynamic cybersecurity marketplace, drive innovation that anticipates future market needs, and continue to grow through our strategic priorities.”
Intel Security’s software platform currently protects more than a quarter of a billion endpoints, secures the footprint for nearly two-thirds of the world’s 2,000 largest companies and detects more than 400,000 new threats each day. The business reported first half revenues up 11 percent year-on-year to USD 1.1 billion, with the operating profit rising 391 percent to USD 182 million.