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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