Intel Corporation (NASDAQ:INTC) is planning to sell its security business. This is part of the restructuring and reforms that the chipmaker is planning to make in the coming days. Intel bought McAfee five years ago and changed its name to Intel Security in 2014. However, the company is looking for capital and a sale of the business is imminent.
Why the sale is called for
When Intel Corporation (NASDAQ:INTC) was bought about six years ago, the future seemed bright, with the increase in cyber threats at that time being high. Internet-connected devices required high security levels in software, hardware as well as services. However, there has been a different turn of events, calling for a sale of the business. Intel is yet to make an official comment on these reports but reports say that the sale is imminent. Patrick Moorhead of Moor Insights & Strategy admits that Intel could sell just a piece of the business, not all. Moorhead further added that security is critical for the success of the Internet of Things.
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. This is perhaps why the company is restructuring. The sale of the business is expected to help the company recoup the initial cost of acquiring McAfee, which was 7.7 billion. Private equity buyers have expressed interest in buying the business, and it is reported that several of them may join hands to purchase the business at 7.7 billion or higher. According to the Financial Times, trusted sources say that the deal that is being negotiated with bankers and other investors could be the greatest in the cyber security sector.