Intel is exploring options to sell its security arm, Intel Security, and has already spoken with several bankers to find a new home for the cyber security division, the Financial Times reported.
The chipmaker has talked to the bankers about the future of its cyber security unit (formerly known as McAfee), which it acquired for $7.7 billion almost six years ago.
The company has yet to comment on the speculation, though those people familiar with the deal expect it to be one of the largest in the IT sector to date.
Intel Security formed after Intel acquired the antivirus software maker McAfee, Inc. in August 2010 to embed its cyber security functionality on the chips, promising the ability to detect security threats at a deeper level. But with Intel’s new strategy intends to move away from the personal computing place, as declining sales have continued to hit the company, it’s reported that Intel Security is now an expendable asset the company is looking to sell.
Reports suggested that Intel’s main motive for the sale appears to be financed, as well as a desire to streamline its business and refocus to revenue-generating areas. Recently, it announced plans to lay off some 12,000 jobs as part of a massive reorganization that will see it focus more on chips for data centers and IoT (Internet of Things) devices and not the PC.
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Security is one big area which is seemingly gaining a lot of attention in the venture capitalist arena, as there have been several big deals announced in recent months.
Earlier this month, Blue Coat Security was acquired by Symantec from private equity firm Bain Capital for $4.65 billion. And recently, Vista Equity Partners has acquired identification of management company Ping Identity for an undisclosed sum.
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