tech2 News StaffJun 27, 2016 08:53:52 IST
Intel is reportedly in talks with bankers to sell off Intel Security, its cyber-security division.
Intel Security is a cyber-security division that includes McAfee Inc., a company that Intel bought for $7.7 billion in 2011. The potential sale of Intel Security will possibly include the sale of the McAfee brand as well. McAfee Inc. was rebranded as Intel Security following its sale to Intel, but Intel decided to keep the brand name for their security products. Intel had initially planned to leverage McAfee Inc.’s cyber-security chops to embed security protocols within Intel’s chips. These plans are yet to materialize, and now it looks like they never will.
The Financial Times reports that Intel’s focus has been shifting to chips for data-centres and IoT platforms following the continual decline in the PC market. Currently, the PC market still accounts for 60 percent of sales and 40 percent of Intel’s profits. The report further adds that private equity firms are certain to express interest in the sale as they see a great deal of cash flow in the cyber-security business. Private equity firms apparently see great demand for cyber-security in the corporate sector.
It is expected that a group of private equity firms will band together to purchase Intel Security for around the same price or higher than the price Intel paid for McAfee.
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