Intel to spin out its cybersecurity division, Intel Security

Intel corporation and TPG collaborate to form a jointly owned, cyber security company named McAfee

United States: TPG and Intel to co-own Intel’s cyber security division, valuing the business transaction at $4.2 billion. TPG will own 51% & Intel will own the remaining stake wherein Intel will receive $3.1 billion in cash, of the new entity McAfee.

With the changing scenarios and rising need for data security, the companies focus on expanding their portfolios in the security domain. Both the companies intend to make McAfee an independent leading name in the cyber security segment and increase the agility in response to the rising data security concerns.

The business pact emphasizes on creating long-term value for McAfee’s clientele, partners, and the shareholders. Furthermore, the deal is expected to reach closure in Q2 of 2017, subjected to certain other formalities, regulatory and customary closing conditions.

TechSci Research depicts that the rising focus of the numerous MNCs such as TPG and Intel towards the cyber security issues is an initiative towards developing a safer technology system.  In correspondence with the rising data breaches, companies focusing completely on the security segment will aid in the augmentation of the data and network security.

According to the recently published report by TechSci Research “Global Cyber Security Market By Security Type (Network Security, Content Security, etc.), By Solutions (Identity & Access Management, Risk & Compliance Management, etc.), By End Use Industry, By Region, Competition Forecast and Opportunities, 2011-2021”, global market for cyber security is projected to surpass US$ 137 billion by 2021. Growing trend of Bring Your Own Device (BYOD), rising adoption of cloud computing, expanding market for Internet of Things (IoT) are expected to continue driving the cyber security market across the globe over the next five years. Though the global cyber security market is highly fragmented, Symantec Corporation emerged as the largest player in 2015, followed by BAE Systems PLC, Intel Corporation and Cisco Systems. Banking, Financial Services and Insurance (BFSI); IT & Telecom; defense; energy & power; retail; and healthcare have emerged as the key application areas where cyber security solutions are being increasingly adopted.