Intel has reached a deal to sell a majority stake in Intel Security to the private equity firm TPG, creating a jointly owned, pure-play cybersecurity company called McAfee, Intel announced Wednesday.
Intel will get $3.1 billion in cash for the deal, as well as a 49-percent stake in the new business. TPG will own the remaining 51 percent and will make a $1.1 billion equity investment in the business. The transaction values Intel Security at $4.2 billion.
Intel Security General Manager Chris Young will be appointed CEO of the new company once the transaction closes. Young published an open letter to Intel Security's stakeholders on Wednesday, outlining the benefits of the deal.
"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," he said. "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."
Intel bought McAfee in 2011 and rebranded the security group as Intel Security in 2014. Last year, Intel Security adjusted its strategy to refocus the business on endpoint and cloud as security control points, as well as actionable threat intelligence, analytics, and orchestration.