Partnerships / Acquisitions

Intel And TPG To Form Standalone Cybersecurity Company McAfee

Intel announced on Wednesday (Sept. 7) that it reached an agreement with TPG to create a newly formed, jointly owned, independent cybersecurity company that will be named McAfee.

TPG will own a 51 percent stake in McAfee, which was named Intel Security, while Intel will get a 49 percent stake. The business is valued at around $4.2 billion. TPG is making a $1.1 billion equity investment in the company to help drive its growth and enable it to be a standalone company. Intel said the new company will be one of the world’s largest pure-play cybersecurity companies.

“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, in a press release announcing the deal. “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.”

“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,” said Jim Coulter, cofounder and co-CEO of TPG, added in the same press release. “TPG is excited to partner with Intel and McAfee management to accelerate growth of the business by enhancing its go-to-market strategy and continuing to grow and strengthen its core product offerings.”

Through the first half of this year, Intel Security Group revenue grew 11 percent to $1.1 billion, while operating income grew 391 percent to $182 million. Intel Security also increased total bookings 7 percent per year on a constant currency basis from 2013 to 2015.

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