Intel to spin off its security business
Intel Security, formerly McAfee, to be majority acquired by investment firm TPG
Intel is selling 51% if its cyber security division, Intel Security, to investment firm TPG for $3.1 billion in cash. Intel will retain 49 percent new entity, valuing the company at $4.2 billion.
The new unit will revert to its former name McAfee.
Intel bought McAfee for $7.7 billion in 2011, in a largely unsuccessful bid to become a major player in the computer security business. At the time of the acquisition, Intel spoke of integrating McAfee security technology into its chips, but little came of those plans.
Chris Young will be appointed CEO of the new company upon closing of the transaction.
Recent reports indicated that the firm’s eccentric founder John McAfee was suing Intel to get back the right to use his name.