Intel spinout: McAfee is back

Intel and TPG team up to make Intel Security an independent entity called McAfee

Intel is going to spin out its subsidiary Intel Security as a joint venture with investment firm TPG, redubbing the new entity with its old name – McAfee.

The deal calls for TPG to make a $1.1 billion equity investment and own 51 percent of the company, with Intel retaining 49%.

In a joint statement the companies say the investment will be used to help the spinout gain its feet as a stand-alone business and to drive growth.

Intel bought McAfee in 2010 for $7.68 billion with the intent of tying McAfee’s security technology with Intel’s chips.

Since then Intel has incorporated technology in some chips that power features of its security software, and Intel Security’ endpoint protection technology is well thought of, consistently ranking among the leaders in Gartner’s analysis of that category. It is ranked number two in market share behind Symantec and in front of Trend Micro.

Its offerings also include network security gear and management, database, Web and server security, and encryption products.

The transaction will be made in multiple steps with the actual spinout expected to occur sometime next spring. The deal values Intel Security at $4.2 billion, which is based on the entity’s $2.2 billion equity value and its $2 billion in debt. The plan calls for Intel to continue servicing the debt until audited financial statements are completed, likely three to five months after the deal closes, the companies say.

Intel says that during the first half of this year Intel Security Group revenue grew 11 percent to $1.1 billion, and operating income grew 391 percent to $182 million.

The deal will require regulatory approval.

McAfee will be led by CEO Chris Young, who previously worked for Cisco and VMware and currently serves as senior vice president and general manager of Intel Security Group.

In an open letter to investors and customers he says the company will hit its announced goals for its portfolio. “We are resolute in delivering our product roadmaps, and this new partnership and pure - play status allows us to invest more and execute even faster to enhanceour product and services offerings on your behalf,” he writes.

He says the spinout will be “focused agile and independent” with the goal of helping enterprises “detect and respond to more threats faster and with fewer resources.”

“With the new investment from TPG and continued strategic backing of Intel, the new entity is expected to capitalize on significant global growth opportunities through greater focus and targeted investments,” TPG and Intel say.

In its latest Magic Quadrant evaluation of endpoint security vendors, Gartner highlights Intel Security’s endpoint agent. “Intel Security has integrated its core endpoint security components into a common endpoint agent, Endpoint Security ENS (v 10.1),” the report says.

“Intel Security's ePolicy Orchestrator (ePO) policy management and reporting framework provides a platform for addressing several aspects of the security life cycle. It continues to be the leading feature that brings and keeps clients with Intel Security. Intel Security is a very good choice for any organization, but especially a large, global enterprise that is seeking solid management and reporting capabilities across a number of disparate security controls.”

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tim Greene

Network World
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?