Is Intel Interested in Selling its Security Business?

In 2014, the chip maker company rebranded its McAfee business as Intel Security. Intel is weighing its options for Intel Security, including possibly selling the antivirus division, according to a report published today. Additionally, the company may be selling its cyber security unit because now, the decline in PC market has got the company focussing on selling chips for cloud computing rather than PCs.

It appears that Intel is gearing up to sell its cyber-security business, as reported by Financial Times.

Intel Corporation (NASDAQ:INTC)’s strategy to enhance security of its customers has not been as successful as it thought, and the activists of the purchase of McAfee have left, disorienting the initial plan.

Chief executive Brian Krzanich plans to cut up more than 12,000 jobs or 11 percent of its workforce by mid-2017, globally.

“Intel has never created a cloud computing environment or cloud computing chips. Any sale of McAfee would be more about cleaning house”, Chowdhry said.

Intel Corporation’s (INTC) EPS growth ratio for the past five years was 3.00% while Sales growth for the past five years was 4.90%. The report said a deal could be the largest in the security field.

Security blogger Graham Cluley pointed out that this would represent the second time Intel has exited the security market – it had an anti-virus product in the 1990s but sold it to Symantec in 1998. However, its presence in the security information and event management (SIEM) and data loss prevention (DLP) markets grew strongly, with SIEM growing 28% to $135 million in revenue in 2015 and DLP rising 38% to $74 million.

The chipmaker bought McAfee in 2010 intending to embed its cyber security functionality on to chips, promising the ability to detect threats at a deeper level.

Earlier this month, Bain Capital sold its Blue Coat to Symantec for nearly twice what it paid to the cyber defence company previous year. In addition there has been interest from private equity buyers.