Intel Corp (INTC.O) said it would spin out its cybersecurity division, formerly known as McAfee, and sell a majority stake in it to investment firm TPG for $3.1 billion in cash.
TPG will own 51 percent of the new entity, valuing the entire company at $4.2 billion including debt.
Intel, which bought McAfee for $7.7 billion in 2011, will retain a 49 percent stake in the business.
The unit, rebranded as Intel Security Group in 2014, will revert to the McAfee brand name following the closing of the deal, expected in the second quarter of 2017.
Chris Young, Intel Security’s general manager, will be named chief executive of the new company.
Intel Security’s revenue rose 11 percent to $1.1 billion through the first half of this year, the company said in a statement.
Photo: The logo of Intel, the world’s largest chipmaker is seen at their offices in Jerusalem, April 20, 2016. Reuters/Ronen Zvulun