Thursday, September 8th 2016

Intel and TPG to Set Up McAfee as an Independent Company Valued at $4.2 Billion

Intel Corporation and TPG today announced a definitive agreement under which the two parties will establish a newly formed, jointly-owned, independent cybersecurity company. The new company will be called McAfee following transaction close. TPG will own 51 percent of McAfee and Intel will own 49 percent 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.

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. 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 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," said Brian Krzanich, CEO of Intel. "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."

"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," said Jim Coulter, Co-Founder and Co-CEO of TPG. "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."

"At TPG, we look to partner with both established and emergent leaders in dynamic and growing markets," said Bryan Taylor, Partner at TPG. "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."

Positioning the New Company for Future Growth
Chris Young will be appointed CEO of the new company upon closing of the transaction. Today he published an open letter to Intel Security's stakeholders outlining benefits of the transaction and new company.

"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 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."

Currently, Intel Security's comprehensive software platform protects more than a quarter of a billion 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 percent to $1.1 billion, while operating income grew 391 percent to $182 million. Intel Security also increased total bookings 7 percent per year on a constant currency basis from 2013 to 2015.

Terms of the Transaction, Financing and Timeline
Under the terms of the agreement, TPG will own 51 percent of a newly-formed cybersecurity company in a multi-step transaction valuing Intel Security at approximately $4.2 billion, based on an equity value of approximately $2.2 billion plus McAfee net debt of approximately $2 billion. The debt initially will be financed by Intel until completion of audited financial statements for McAfee (expected within three to five months of close). The transaction is expected to close in the second quarter of 2017, subject to certain regulatory approvals and customary closing conditions.
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24 Comments on Intel and TPG to Set Up McAfee as an Independent Company Valued at $4.2 Billion

#1
seronx
I don't why, but I hope they change the name to Young Security.
Posted on Reply
#2
DeathtoGnomes
I'm all for this if it means that consumer privacy is a good chunk of the focus, and without back doors that the NSA seems to always demand in new software (Skype much?). Something those idiots at M$ dont understand about consumer privacy, if they did they would remove any data collection from every version of windows. IMO.
Posted on Reply
#3
AsRock
TPU addict
Installing anything McAfee is like wanting to reformat your HDD.
Posted on Reply
#5
P4-630
Good for them but no McAfee on my systems....
No thank you :p
Posted on Reply
#6
Melvis
TPG as in the internet company here in Australia?
Posted on Reply
#7
Jborg
My cousin worked for McAfee for a while, he gave me a couple free subscription cards that I never used lol.

Ironically I only ever seem to have issues with viruses when I have some sort of mainstream anti-virus installed.... its been years since I had to deal with one...
Posted on Reply
#8
AsRock
TPU addict
JborgMy cousin worked for McAfee for a while, he gave me a couple free subscription cards that I never used lol.

Ironically I only ever seem to have issues with viruses when I have some sort of mainstream anti-virus installed.... its been years since I had to deal with one...
Well these days it don't need to be a virus to make some one concerned, and lets face it AV's might as flawed as the news is,

Because you tried 1/6 dozen AV's don't mean you have nothing bad on your system, shit windows10 is bad to a lot of people.
Posted on Reply
#9
eidairaman1
The Exiled Airman
AsRockWell these days it don't need to be a virus to make some one concerned, and lets face it AV's might as flawed as the news is,

Because you tried 1/6 dozen AV's don't mean you have nothing bad on your system, shit windows10 is bad to a lot of people.
I stopped using McAfee after I moved to W7. It had gotten as bloated as Norton AV then.
Posted on Reply
#10
snakefist
Very wise! They were an independent company before Intel bought it. Now, they can 'spread their wings' again, hahahaha...

I *had* to endure several years under McAfee antivirus (though, more than 10 years ago) because company I work in wisely bought it, and can't forget following masterpiece:

"An infected file was found. Disinfection: FAILED. Quarantine: FAILED. File deletion: FAILED. Leave alone: SUCCEEDED!"

Good thing McAfee AV stopped infection, even better that 'leave alone' succeeded... I mean, what if it haven't, what then?
Posted on Reply
#11
dorsetknob
"YOUR RMA REQUEST IS CON-REFUSED"
Guess This Buggers McAfee's Plans to buy back the rights to his Name From INTEL :)
Posted on Reply
#12
TheGuruStud
Must be nice to have something as worthless as the turd I'm currently generating "valued" in the billions. The amount of money wasted on symantec and mcafee is mind boggling. I can't say I've seen either block anything actually harmful. They're glorified keygen detectors lol.
Posted on Reply
#13
AsRock
TPU addict
Intel chips with McAfee tech just what we need.
Posted on Reply
#14
Prima.Vera
People are right here. McAfee is one of the worst anti-viruses out there. But worst than that, are their physical appliances, which crash almost on monthly basis because of crappy firmware.
Posted on Reply
#15
silentbogo
TheGuruStudMust be nice to have something as worthless as the turd I'm currently generating "valued" in the billions. The amount of money wasted on symantec and mcafee is mind boggling. I can't say I've seen either block anything actually harmful. They're glorified keygen detectors lol.
Don't forget about bundling. Ever since the initial acquisition you get free 1year McAfee antivirus subscription with almost anything: your cheap office PC, internet service, external hard drive, chinese blender, or with a large pack of cookies :slap:
Through these partners and referrals McAfee AV got most of its "worth". I already miss times when it was mercilessly exploiting people's paranoia (e.g. John McAfee times).
Posted on Reply
#16
JMccovery
Can someone tell me exactly why Intel purchased McAfee?

If it was about "leveraging synergies" (that phrase makes me cringe), and for some reason it didn't work, then why?

Sometimes, it's as though Intel just loves to throw away money.
Posted on Reply
#17
R-T-B
dorsetknobGuess This Buggers McAfee's Plans to buy back the rights to his Name From INTEL :)
Isn't he wanted in the bahamas or something anyways? If I was him I'd dump his name faster than a hot potato.

EDIT: Nope, Belize, and for murder:

gizmodo.com/5959812/john-mcafee-wanted-for-murder

Fun times man...
Posted on Reply
#18
rtwjunkie
PC Gaming Enthusiast
R-T-BIsn't he wanted in the bahamas or something anyways? If I was him I'd dump his name faster than a hot potato.

EDIT: Nope, Belize, and for murder:

gizmodo.com/5959812/john-mcafee-wanted-for-murder

Fun times man...
There was actually a great two hour documentary on him recently. It really made him out to be crazier than I thought he was before! It was better and more entertaining than any script could have been for a movie! :laugh::laugh:
Posted on Reply
#19
TheGuruStud
I gottw give him cred
rtwjunkieThere was actually a great two hour documentary on him recently. It really made him out to be crazier than I thought he was before! It was better and more entertaining than any script could have been for a movie! :laugh::laugh:
I gotta give him credit, though. He may be crazy, but he's not afraid to bust people's balls and tell it like it is.
Posted on Reply
#20
D007
People still use Mcafee? lol.. I'm sorry..
Posted on Reply
#21
dorsetknob
"YOUR RMA REQUEST IS CON-REFUSED"
D007People still use Mcafee? lol.. I'm sorry..
"" I For one Still use Mcafee "" ........................... i always Click the uninstaller
Posted on Reply
#22
D007
dorsetknob"" I For one Still use Mcafee "" ........................... i always Click the uninstaller
Had an lol moment there.. :laugh:
Posted on Reply
#23
Prima.Vera
D007People still use Mcafee? lol.. I'm sorry..
Worst. Do Companies still use McAfee?? Unfortunately mines still doeas. Antivirus software, hardware Antivirus appliance (worst thing ever invented) and IDPS appliances.
Posted on Reply
#24
Delta6326
Am I missing something or what? I use McAfee and have zero issues on my phones and computers.
Posted on Reply
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