SAN FRANCISCO – Hewlett-Packard Enterprise and Intel Corporation announced plans Wednesday to spin off units.
HPE will spin off its non-core software assets, to be merged with British software group Micro Focus while Intel will make its cybersecurity operations as an independent company under the name McAfee.
HPE creates an entity valued at $8.8 billion which will be “one of the world’s largest pure-play enterprise software companies,” according to HPE.
“With today’s announcement, we are taking another important step in achieving the vision of creating a faster-growing, higher-margin, stronger cash-flow company well-positioned for our customers and for the future,” said Meg Whitman, chief executive of HPE.
The move comes after the breakup of computer giant Hewlett Packard last year into two companies: software and services HPE and computer and printer maker HP Inc.
Under the deal, HPE shareholders will get 50.1 percent ownership of the new combined company and a $2.5 billion cash payment.
Intel’s move comes six years after the acquisition of McAfee, one of the leading antivirus software companies at the time.
An Intel statement said the spinoff would be made with the investment group TPG, which would own 51 percent of McAfee, leaving Intel with 49 percent and valuing the group at $4.2 billion.
Intel chief Brian Krzanich said in a statement that “security remains important in everything we do at Intel and going forward we will continue to integrate industry-leading security and privacy capabilities in our products from the cloud to billions of smart, connected computing devices.”
The new group will be one of the world’s largest pure-play cybersecurity companies, and frees Intel to focus on new priorities such as wearables and other connected devices.
“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,” said Jim Coulter, co-founder and co-chief executive of TPG.
Chris Young, who heads the unit, will be CEO of the new company.
Intel announced the $7.68 billion deal for McAfee in 2010 and closed the deal in 2011.
The group is no longer affiliated with founder John McAfee, who was a fugitive from authorities in Central America and more recently made a run for the US presidency.