Santa Clara, California-based computing chip makerÂ Intel (Nasdaq: INTC) will spin off the company’s security businessÂ into a new joint venture withÂ investment firmÂ TPGÂ through an estimated $4.2 billion multi-step transaction.
IntelÂ said WednesdayÂ it will own 49 percent of the JV to be called “McAfee” and receive $3.1 billion cash whileÂ TPG will own the remaining 51 percent and invest $1.1 billion in theÂ entity under the agreement.
The companies expect to close the deal in the second quarter of 2017.
Intel’s security unit, whichÂ generatedÂ $1.1 billion in revenue during the first half of 2016, employs more than 7, 500 professionals andÂ marketsÂ aÂ software platform designed toÂ secureÂ approximately 400, 000 computer threatsÂ a day.
The business implemented aÂ new strategy last year to refocusÂ on endpoint and cloud security control points, actionable threat intelligence, orchestration and analytics in a push to help customers respond to threats faster.
Chris Young, senior vice president and general manager of Intel’sÂ security arm, willÂ serve as CEO of the future independent company McAfee.
“With TPGâs investment, along with continued support from Intel, McAfee will sharpen its focus and become even more agile in its response to todayâs rapidly evolving security sector, â said Jim Coulter, co-founder and co-CEO of TPG.
Intel CEO Brian Krzanich said the companyÂ will continue efforts to integrateÂ security and privacy technologies into its productsÂ as well as collaborate with McAfeeÂ to offer new platforms to customers.