Intel Corporation (NASDAQ:INTC) is considering the possibility of selling its cybersecurity business, according to a report from the Financial Times on Sunday based on information from people familiar with the situation.
The report indicated that the world’s largest semiconductor chipmaker has been discussing with bankers about the future of a company in a transaction that would be become one of the largest in the industry.
In February 2011, Intel completed its acquisition of McAfee for $7.7 billion and became part of Intel Security. The business unit is focused on developing proactive, proven solutions and services that protect systems, networks, and mobile devices for business and personal user worldwide.
The chipmaker acquired McAfee as a complement to its mobile wireless strategy—combining security software and hardware to provide customers with a more secure and trusted Internet-enabled device experience. Chris Young is the head of Intel Security. He was a former senior vice-president at Cisco Systems (NASDAQ:CSCO).
Intel is restructuring its business
In April, Intel announced a restructuring initiative that would accelerate its transformation into a company that powers the cloud and billions of smart connected computing devices. The move came as the company has been negatively impacted by the declining PC market.
The company aims to establish itself as a “leader for the smart connected world.” One of the plans mentioned by Intel were to increase its investments in products and technologies that would boost its revenue growth, data cent, Internet of Things (IoT), memory and connectivity business. It would also reduce its workforces by 11% or 12,000 jobs globally by middle of 2017.
Private equity firms are interested in cybersecurity companies
The Financial Times noted that private equity firm becoming more interested in acquiring cybersecurity companies as corporate clients are increasingly concern of protecting their businesses against cyberattacks.
Private equity firms will probably form a consortium to acquire Intel Security if the chipmaker decides to sell it for $7.7 billion or more.
Vista Equity Partners recently acquired Ping Identity, an authentication service while Symantec bought Blue Coat Security from Bain Capital earlier this month.