Intel Cyber Security Business is Under Consideration


Chipmaker Intel is currently going through a careful consideration about selling its Intel Security.

According to the report in The Financial Times on Sunday, Intel is considering the sale of its cyber security business. The Silicon Valley chipmaker has reportedly been talking to its bankers regarding the options for Intel Security unit. The deal of Intel cyber security business would be one of the largest in sector, according to the people close to the discussions. Previously known as McAfee, the cyber security was bought for $7.7bn by Intel back in 2010 with intention to embed the cyber security functionality on to chips. Not able to complete the mission, now Intel is facing a big decision about the future of its cyber security business.

The sale of Intel cyber security business idea comes from the fact that there are people who are interested in buying the Intel Security. Reportedly, a group of PE firms might be club together in order to purchase Intel Security if it is sold for the same price—or even higher—than the $7.7bn the chipmaker originally paid for it six years ago. Apparently, private equity buyers are becoming more interested in cyber security companies these days. They are anticipating strong cash flow, seeing how corporate customers become increasingly worried about cyber attacks.

Corporate customers would do what it costs in order to protect their business from such cyber attacks, hence the sale of Intel cyber security business. Just earlier this month, Blue Coat Security was sold to Symantec for almost twice what Bain Capital paid the cyber defence company. Ping Identity, an authentication service, was recently bought by Vista Equity Partners. The venture capital reportedly flooded into the highly frgmented cyber security industry in the last two years. Many in the industry seek for consolidation as small start-ups are bought for their cyber security technology and engineers, due to sow fundraising.



Intel is reportedly to have been restructuring its business after being hit by the declining PC market. The chipmaker has made announcement its plans this year to cut as many as 12,000 jobs in its largest workforce reduction in a decade. Intel wants to refocus around selling chips for cloud computing than PCs, which apparently still contribute 60% of sales and 40% of profits. Now led by Chris Younf, a former Cisco senior vice-president, what would Intel decision be regarding the sale of Intel cyber security business?