Intel weighs sale of its cyber security business
Intel, the Silicon Valley chipmaker is taking into account the sale of its cyber security business, the antivirus software maker formerly known as McAfee. Intel purchased McAfee for $7.7 billion in 2011.
According to Financial Report, Santa Clara-based Company has been discussing with the bankers regarding the future of its cyber security unit in a pact that would be one of the largest in the sector. The news has been revealed by some unidentified people close to the discussions. Intel refused to comment.
As corporate customers become more and more concerned about protecting their business from potential cyber attacks, private equity buyers are expecting strong cash flow in cyber security firms. A group of PE firms might unite together to purchase Intel Security if the company sells it for the same price or higher than the price it paid for buying McAfee.
Earlier this month, Symantec brought Blue Coat Security from Bain Capital for almost twice the price Bain capital paid for it last year.
Intel has been shifting its target to higher growth areas such as microchips that power data centers and Internet-connected devices. Last April, the company announced that it planned to cut up to 12,000 jobs globally as the personal-computer market has declined.
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