In­tel weighs sale of cy­ber se­cu­rity busi­ness

Pakistan Observer - - ECONOMY WATCH -

NEW YORK—In­tel is look­ing at op­tions for In­tel Se­cu­rity, in­clud­ing po­ten­tially sell­ing the an­tivirus soft­ware maker for­merly known as McAfee which it bought for $7.7bn al­most six years ago.

The Sil­i­con Val­ley chip­maker has been talk­ing to bankers about the fu­ture of its cy­ber se­cu­rity unit in a deal that would be one of the largest in the sec­tor, ac­cord­ing to peo­ple close to the dis­cus­sions.

Pri­vate eq­uity buy­ers are in­creas­ingly in­ter­ested in cy­ber se­cu­rity companies, an­tic­i­pat­ing strong cash flow as cor­po­rate cus­tomers be­come in­creas­ingly wor­ried about pro­tect­ing their busi­ness from cy­ber at­tacks. A group of PE firms might club to­gether to buy In­tel Se­cu­rity if it is sold for the same price or higher than the $7.7bn In­tel orig­i­nally paid for it.

Ear­lier this month, Bain Cap­i­tal sold Blue Coat Se­cu­rity to Sy­man­tec for al­most twice what it paid the cy­ber de­fence com­pany last year. Vista Eq­uity Part­ners also bought Ping Iden­tity, an au­then­ti­ca­tion ser­vice, which had been plan­ning an ini­tial pub­lic of­fer­ing at the start of June.

Ven­ture cap­i­tal flooded into the highly frag­mented cy­ber se­cu­rity in­dus­try in 2014 and 2015, as the old stal­warts ap­peared un­able to pro­tect against newer, more so­phis­ti­cated at­tacks.—Agen­cies

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