Computer chipmaker Intel Corporation (NASDAQ:INTC) is selling off a majority stake in its McAfee cyber security unit to investment firm TPG.
TPG will acquire a 51% stake in the division, more recently known as Intel Security, for US$3.1bln in cash, with Intel retaining the other 49%.
“As we collaborate with TPG to establish McAfee as an independent company, we will also share in the future success of the business, creating long-term value for McAfee’s customers, partners, employees and Intel’s shareholders,” said Intel’s chief executive Brian Krzanich.
Including debt, the deal values the security business US$4.2bln.
The computer chip giant originally bought McAfee back in 2011 for US$7.7bln, a 60% premium on the share price at the time.
As the new majority owner, TPG will attempt to drive growth in its latest acquisition by making a US$1.1bln equity investment into it.
The investment group will also revert to the McAfee brand name after Intel changed it to Intel Security back in 2014.
Rumours of a sale had been circling for a little while as Intel looked to refocus on its core business, and analysts had speculated that security software didn’t really fit into those plans.
The deal is expected to close in the second quarter of 2017.
Shares were down 20c, or 0.5%, to US$36.26.