Monday, September 19, 2016

Intel, TPG establish world’s largest pure-play cybersecurity firms worth $4.2bn

The duo of Intel Corporation and leading global alternative asset firm, TPG have established the world’s largest pure-play cybersecurity firms worth $4.2bn, reports ITRealms.

This collaboration, ITRealms reports saw to Intel and TPG jointly investing in spin-out of Intel Security in a transaction valuing the business to the tune of $4.2 billion.

ITRealms gathered that Intel received $3.1 billion in cash and retained 49 per cent stake after completion of the transaction, while TPG owns 51 per cent of the new company, which will be named McAfee, as the leading independent cybersecurity company

Industry observers said the investment reflects TPG’s confidence in Intel security’s industry-leading enterprise and consumer businesses, strong market position, and business momentum, which positions new company as one of the world’s largest pure-play cybersecurity firms.

According to Intel senior vice president and Intel Security general manager, Mr. Chris Young said existing management team would lead the new company following transaction closure.

Through this transaction, TPG, a leading global alternative asset firm with demonstrated expertise in growing profitable software companies and carve-out investments, and Intel, a global technology leader that powers the cloud and billions of smart, connected computing devices, will work together to position McAfee as a strong independent company with access to significant financial, operational and technology resources.

Mr. Young also said that 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 investment.

The new company, ITRealms reports, will be one of the world’s largest pure-play cybersecurity companies. Just as 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,” Young enthused.

Reacting to this development, Brian Krzanich, the chief executive officer, Intel, noted that security remains important in everything at Intel and going forward they company will continue to integrate industry-leading security and privacy capabilities in its products from the cloud to billions of smart, connected computing devices.

“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,” Krzanich said.

The Co-Founder and Co-CEO of TPG, Jim Coulter, they 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” Mr. Coulter assured.

Chuks Egbune/GEE
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