Return of the McAfee: Intel Security spun out as new $4.2bn business

4 Apr 20174 Shares

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Intel Security will once again be known as McAfee.

Intel has made good on its promise to divest itself of its security division by spinning it out as an independent company.

The new business will go by its old name, McAfee, and will be valued at $4.2bn.

Intel acquired McAfee in 2010 for $7.6bn.

The chip giant will still own 49pc of the new company, and the remainder will be owned by venture firm TPG.

In September, Intel sold a 51pc stake to TPG for around $3.1bn and the latter promised to invest $1.1bn in the former Intel Security division.

Equity investment firm Thoma Bravo has joined McAfee as a minority investor through an agreement with TPG.

200bn smart objects will need security

Intel senior vice-president and general manager Chris Young will lead the new McAfee as CEO.

Young described cybersecurity as the greatest challenge of the connected age.

“As a stand-alone company with a clear purpose, McAfee gains the agility to unite people, technology and organisations against our common adversaries and ensure our technology-driven future is safe,” he said.

By 2020, Intel estimates that 200bn smart objects will be part of the internet of things universe, posing new security challenges.

“We offer Chris Young and the McAfee team our full support as they establish themselves as one of the largest pure-play cybersecurity companies in the industry,” said Brian Krzanich, Intel CEO.

“Security remains important to Intel, and in addition to our equity position and ongoing collaboration with McAfee, Intel will continue to integrate industry-leading security and privacy capabilities in our products from the cloud to billions of smart, connected computing devices,” Krzanich said.

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com