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Intel plans flogging off security business

by on27 June 2016


Five years after buying it


Chipzilla has run out of ideas about what it is going to do with it its security business and is apparently planning to flog it off.

Five years ago Intel bought McAfee for $7.7bn acquisition. Two years ago it rebranded it as Intel Security. There was talk about chip based security and how important this would be as the world moved to the Internet of Things.

Now the company has discussed the future of Intel Security with bankers, including potentiallythe outfit. The semiconductor company has been shifting its focus to higher-growth areas, such as chips for data centre machines and Internet-connected devices, as the personal-computer market has declined.

The security sector has seen a lot of interest from private equity buyers. Symantec said earlier this month it was acquiring Web security provider Blue Coat for $4.65 billion in cash, in a deal that will see Silver Lake, an investor in Symantec, enhancing its investment in the merged company, and Bain Capital, majority shareholder in Blue Coat, reinvesting $750 million in the business through convertible notes.

However Intel’s move into the Internet of Things does make it difficult for it to exit the security business completely. In fact some analysts think it will only sell of part of the business and keep some key bits for itself.

Last modified on 27 June 2016
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