Saturday, September 25, 2021
65.6 F
Fort Worth

Fort Worth firm to own part of McAfee in $4.2B deal with Intel

🕐 1 min read

TPG, the alternative-asset manager that oversees $70 billion, agreed to acquire Intel Corp.’s computer-security unit in a deal that values the business at $4.2 billion including debt.

Intel had also been talking to other potential suitors, including buyout firms and corporate suitors, people familiar with the matter said last week, naming TPG as a likely bidder.

TPG will own 51 percent of the company, known as McAfee, while Intel will have a 49 percent stake in the spin-out, according to a statement Wednesday. The company will be led by Chief Executive Officer Chris Young, currently a senior vice president at Intel and general manager of its security unit.

Intel is offloading the anti-virus software unit as part of a strategy to focus on its more profitable data-center business. The Santa Clara, California-based chipmaker acquired McAfee in 2011 for $7.7 billion to build security features directly into its silicon products.

The business had $1.1 billion in revenue in the first half of 2016, an 11 percent increase from the same period last year, Intel said in the statement. Operating income more than quadrupled to $182 million.

“We have long identified the cyber-security sector, which has experienced strong growth due to the increasing volume and severity of cyber attacks, as one of the most important areas in technology,” Bryan Taylor, a partner at Fort Worth and San Francisco-based TPG, said in the statement. “We see a compelling opportunity to invest in a highly-strategic platform that is growing consistently.”

TPG, led by co-CEOs Jim Coulter and Jon Winkelried, will invest $1.1 billion in the transaction, valuing McAfee’s equity at $2.2 billion, according to the statement. The company has net debt of about $2 billion, which Intel will finance for three to five months after the deal closes. That’s expected to happen in the second quarter of 2017.

Related Articles

Our Digital Sponsors

Latest Articles

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate