Intel to spin out McAfee cybersecurity unit into new company

Intel is spinning out its cybersecurity unit into a new company, called McAfee, in a deal with private equity firm TPG.

The deal values McAfee at $4.2 billion, including its debt of about $2 billion.

Santa Clara, California-based Intel had bought McAfee in 2011 for $7.68 billion.

Intel said Wednesday that McAfee will be one of the largest cybersecurity firms and will be led by Chris Young, senior vice president and general manager of Intel’s security group.

Intel will get $3.1 billion cash and retain a 49 percent stake in the new company. TPG, based in Fort Worth, Texas, will invest $1.1 billion in McAfee and own 51 percent of the company. The transaction is expected to close in the second quarter next year.