Dive Brief:
- Intel is looking into selling its security business, Computerworld reports.
- If the deal materializes, it could be one of the largest to date in the cybersecurity sector, predicts The Financial Times.
- Intel’s security business is rooted in the company’s $7.7 billion purchase of McAfee in 2010. Intel rebranded McAfee as Intel Security in 2014.
Dive Insight:
A group of private equity firms is working together to possibly buy the security business, reports said. Intel declined to comment.
The security sector has seen significant turmoil in the last few months. Earlier this month, Symantec Corp. agreed to buy Blue Coat Systems Inc. for $4.65 billion and Bloomberg reported that security firm FireEye had hired Morgan Stanley to help field interested buyers. The potential sale is now off the table, sources said.
Cybersecurity company stocks have continued to struggle. FireEye has fallen about 25% this year. Other cybersecurity firms have seen their valuations plummet over the last six months. Analysts say high-profile data breaches drove security spending up in 2015, making cybersecurity company valuations too high.
Meanwhile, Intel has been working to shift its business strategy toward cloud and other Internet technology, and may be motivated to sell its security business so it can better focus on those areas.
