Cybersecurity Market Review

TPG Acquires Intel Security, Jointly Investing In New Spin-Out
TPG Makes A Big Cybersecurity Bet.
acquires
Enterprise Security
Transaction Overview
Date:
Percentage
Ownership:
HQ:
CEO:
$4.2 Billion
9/7/2016
Santa Clara, CA
Christopher Young
McAfee Acquisition History Since Intel Acquisition
51%
Date Company Amount ($M) Date Company Amount ($M)
Transactions Summary / Rationale
Transaction / Spin-Out Details
§ TPG to own 51% stake; Intel to own 49% stake
§ TPG will invest $1.1B in the transaction (from TPG Partners VII fund), valuing McAfee’s equity at $2.2B.
McAfee has net debt of $2B which Intel will finance for 3-5 months after the deal is completed
§ Intel SVP and Intel Security GM Chris Young and existing management team to lead the new company
following transaction close
Rationale
§ "As we collaborate with TPG to establish McAfee as an independent company, we will also share in the
future success of the business and in the market demand for top-flight security solutions, creating long-term
value for McAfee's customers, partners, employees and Intel's shareholders. Intel will continue our
collaboration with McAfee as we offer safe and secure products to our customers.” - Brian Krzanich, CEO of
Intel
§ "We believe that McAfee will thrive as an independent company. With TPG's investment, along with
continued support from Intel, McAfee will sharpen its focus and become even more agile in its response to
today's rapidly evolving security sector." - Jim Coulter, Co-Founder and Co-CEO of TPG
TPG Security Portfolio
Company TPG Partner Investment
10/15
NA 10/11 NA
(Sold Firewall Biz)
5/13 376.2 3/11 NA
Bryan Taylor
9/2/15 Series G
$117.5M
($3.4B Pre-Money)
Lead Investor
2/13 NA 2/11 10.7
Nehal Raj
8/3/15 Series D
$85.0M
($1.0B Pre-Money)
Lead Investor
2/12 NA 8/10 6,907.7
Source: Company press releases and websites, 451 Research. 20