McAfee, the security company that was bought by Intel and rolled into Intel Security over three years ago, has been spun out again and renamed McAfee.
The move is the result of an agreement between Intel and TPG, under which the two parties will establish a new, jointly-owned, independent cybersecurity company.
TPG will own 51% of McAfee and Intel will own 49% in a transaction valuing the business at approximately $4,2-billion.
TPG is making a $1,1-billion equity investment to help drive growth and enhance focus as a standalone business.
TPG is a global alternative asset firm with expertise in growing profitable software companies and carve-out investments.
The two companies will work together to position McAfee as a strong independent company with access to significant financial, operational and technology resources.
With the new investment from TPG and continued strategic backing of Intel, the new entity is expected to capitalise on significant global growth opportunities through greater focus and targeted investment.
McAfee will be one of the world’s largest pure-play cybersecurity companies. Last year, Intel Security unveiled a new strategy that refocused the business on endpoint and cloud as security control points, as well as actionable threat intelligence, analytics and orchestration. This new strategy allows customers to detect and respond to more threats faster and with fewer resources.
“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,” says Intel CEO Brian Krzanich. “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.”
Jim Coulter, co-founder and co-CEO of TPG, adds: “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.
“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.”
TPG partner Bryan Taylor comments: “At TPG, we look to partner with both established and emergent leaders in dynamic and growing markets. We have long identified the cybersecurity sector, which has experienced strong growth due to the increasing volume and severity of cyberattacks, as one of the most important areas in technology.
“Given McAfee’s leading global market position, loyal customer base, and trusted technology, we see a compelling opportunity to invest in a highly-strategic platform that is growing consistently and addressing significant and evolving market demand.”
Chris Young will be appointed CEO of the new company upon closing of the transaction.
“As a standalone company supported by these two partners, we will be in an even greater position of strength, committed to being the best provider the cybersecurity industry has ever seen,” Young wrote in an open letter to Intel Security stakeholders.
“We will continue to focus on solving the unique demands of customers in the dynamic cybersecurity marketplace, drive innovation that anticipates future market needs, and continue to grow through our strategic priorities.”
Currently, Intel Security’s comprehensive software platform protects more than 250-million endpoints, secures the footprint for nearly two-thirds of the world’s 2 000 largest companies, detects more than 400 000 new threats each day, and represents more than 7 500 strong of the industry’s most talented professionals.
The business has demonstrated strong momentum. Through the first half of this year, Intel Security Group revenue grew 11% to $1,1-billion, while operating income grew 391% to $182-million. Intel Security also increased total bookings 7% per year on a constant currency basis from 2013 to 2015.