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.