Menu
Intel sells off majority stake in McAfee unit

Intel sells off majority stake in McAfee unit

Intel made the deal with investment firm TPG, which will own a 51 percent stake

Intel is selling off a majority stake in its McAfee unit and turning it back into an independent security company.

Intel made the deal with investment firm TPG, which will own a 51 percent stake in the new McAfee company. Intel will own the remainder.

As part of the deal, Intel is receiving $3.1 billion in cash. It originally bought McAfee back in 2011 for $7.7 billion -- a deal that caused some industry watchers to scratch their heads.

Intel is best known as a chipmaker, but at the time it was also hoping to improve  security around its products. PC security was a major concern back then, said Nathan Brookwood, principal analyst at Insight 64. But now cyberthreats are moving to target the cloud and servers.

"McAfee had relatively little to do in cloud security. While Intel didn't lose a lot of money, it never was a huge win," he said.

In 2014, the chipmaker rebranded its McAfee business as Intel Security. However, reports about a possible McAfee sale circulated earlier this year as Intel worked to restructure its business amid lagging PC sales. In April, the company announced it would cut 12,000 jobs.  

On Wednesday, Intel said the new McAfee will be one of the largest “pure-play” cybersecurity companies in the world. The new company will be valued at $4.2 billion.

In addition, TPG is making a $1.1 billion equity investment in its new McAfee property to drive growth.

Intel will continue partnering with the McAfee unit on security. Chris Young, the general manager for Intel Security, will be head of the new company.

In a letter to stakeholders, Young said the company is still committed to delivering on its product roadmap, but that it can execute its plans even faster. 

"Our customers want the reassurance that our strategy has not changed. It hasn’t," he added. 

The deal is expected to close in next year’s second quarter.

Agam Shah contributed to this report. 


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments