Intel and TPG to Collaborate to Establish McAfee as Leading Independent Cybersecurity Company Valued at $4.2 Billion

Intel Corporation and TPG Announce an Agreement Under Which the Two Parties Will Establish a Newly Formed, Jointly-Owned, Independent Cybersecurity Company Called McAfee

Highlights:

• TPG and Intel to jointly invest in spin-out of Intel Security in a transaction valuing the business at $4.2 billion
• Intel to receive $3.1 billion in cash and retain 49 percent stake after completion of the transaction
• TPG to own 51 percent of the new company, which will be named McAfee
• Investment reflects TPG’s confidence in Intel Security’s industry-leading enterprise and consumer businesses, strong market position, and business momentum
• Positions new company as one of the world’s largest pure-play cybersecurity firms
• Intel senior vice president and Intel Security general manager Chris Young and existing management team to lead the new company following transaction close

SANTA CLARA and SAN FRANCISCO, Calif., and FORT WORTH, Texas, Sept. 7, 2016 –Intel Corporation and TPG today announced a definitive agreement under which the two parties will establish a newly formed, jointly-owned, independent cybersecurity company. The new company will be called McAfee following transaction close. TPG will own 51 percent of McAfee and Intel will own 49 percent in a transaction valuing the business at approximately $4.2 billion. TPG is making a $1.1 billion equity investment to help drive growth and enhance focus as a standalone business.

Through this transaction, TPG, a leading global alternative asset firm with demonstrated expertise in growing profitable software companies and carve-out investments, and Intel, a global technology leader that powers the cloud and billions of smart, connected computing devices, will work together to position McAfee as a strong independent company with access to significant financial, operational and technology resources. With the new investment from TPG and continued strategic backing of Intel, the new entity is expected to capitalize on significant global growth opportunities through greater focus and targeted investment.

The new company will be one of the world’s largest pure-play cybersecurity companies. Last year, Intel Security unveiled a new strategy that refocused the business on endpoint and cloud as security control points, as well as actionable threat intelligence, analytics and orchestration. This new strategy allows customers to detect and respond to more threats faster and with fewer resources.

“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,” said Brian Krzanich, CEO of Intel. “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.”

“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-CEO of TPG. “TPG is excited to partner with Intel and McAfee management to accelerate growth of the business by enhancing its go-to-market strategy and continuing to grow and strengthen its core product offerings.”

“At TPG, we look to partner with both established and emergent leaders in dynamic and growing markets,” said Bryan Taylor, Partner at TPG. “We have long identified the cybersecurity sector, which has experienced strong growth due to the increasing volume and severity of cyberattacks, as one of the most important areas in technology. Given McAfee’s leading global market position, loyal customer base, and trusted technology, we see a compelling opportunity to invest in a highly-strategic platform that is growing consistently and addressing significant and evolving market demand.”

Positioning the New Company for Future Growth

Chris Young will be appointed CEO of the new company upon closing of the transaction. Today he published an open letter to Intel Security’s stakeholders outlining benefits of the transaction and new company.

“As a standalone company supported by these two partners, we will be in an even greater position of strength, committed to being the best provider the cybersecurity industry has ever seen,” Young said. “We will continue to focus on solving the unique demands of customers in the dynamic cybersecurity marketplace, drive innovation that anticipates future market needs, and continue to grow through our strategic priorities.”

Currently, Intel Security’s comprehensive software platform protects more than a quarter of a billion endpoints, secures the footprint for nearly two-thirds of the world’s 2,000 largest companies, detects more than 400,000 new threats each day, and represents more than 7,500 strong of the industry’s most talented professionals. The business has demonstrated strong momentum. Through the first half of this year, Intel Security Group revenue grew 11 percent to $1.1 billion, while operating income grew 391 percent to $182 million. Intel Security also increased total bookings 7 percent per year on a constant currency basis from 2013 to 2015.1

Terms of the Transaction, Financing and Timeline

Under the terms of the agreement, TPG will own 51 percent of a newly-formed cybersecurity company in a multi-step transaction valuing Intel Security at approximately $4.2 billion, based on an equity value of approximately $2.2 billion plus McAfee net debt of approximately $2 billion. The debt initially will be financed by Intel until completion of audited financial statements for McAfee (expected within three to five months of close). The transaction is expected to close in the second quarter of 2017, subject to certain regulatory approvals and customary closing conditions.

About Intel

Intel (NASDAQ: INTC) expands the boundaries of technology to make the most amazing experiences possible. Information about Intel can be found at newsroom.intel.com andintel.com.

About TPG

TPG is a leading global alternative asset firm founded in 1992 with over $70 billion of assets under management and offices in Austin, Beijing, Dallas, Fort Worth, Hong Kong, Houston, Istanbul, London, Luxembourg, Melbourne, Moscow, Mumbai, New York
, San Francisco, São Paulo, Singapore, and Tokyo. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio. For more information, visit http://www.tpg.com/.

Forward Looking Statements

This document contains forward looking statements related to the proposed transaction between Intel and TPG, including statements regarding the benefits and the timing of the transaction. Forward looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including the following, among others: closing of the transaction may not occur or may be delayed; changes in consumer demand; Intel’s ability to successfully separate the Intel Security business and factors affecting McAfee’s ability to operate as a standalone business; the realization of the projected benefits of the proposed transaction; the retention of suppliers, customers and key employees; McAfee’s ability to service and satisfy debt obligations assumed in the transaction; general economic conditions in the regions and industries in which Intel and Intel Security operate; the intensely competitive industries in which Intel and Intel Security operate; and litigation or regulatory matters and other issues that could affect the closing of the transaction.

In addition, please refer to the documents that Intel files with the U.S. Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K. These filings identify and address other important risks and uncertainties that could cause events and results to differ materially from those contained in the forward-looking statements set forth in this document. Readers are cautioned not to put undue reliance on forward-looking statements, and Intel and TPG assume no obligation and do not intend to update these forward-looking statements, whether as a result of new information, future events or otherwise.

1 Excludes bookings for divested businesses (Stonesoft Next Generation Firewall and Enterprise Firewall)

Intel and the Intel logo are trademarks of Intel Corporation in the United States and other countries.

* Other names and brands may be claimed as the property of others.

- wong chee tat :)

Intel and TPG and McAfee

September 7, 2016

Intel Security Stakeholders,

Today, Intel and TPG made an exciting announcement that I want to share with you directly.  We unveiled a strategic partnership with the goal of creating one of the largest independent, pure-play cybersecurity companies in the industry. To enable this partnership, we are creating a new corporate entity, to be named McAfee, of which Intel will continue to own 49% and TPG, a leading global alternative asset firm with substantial experience investing in best-in-class technology companies, will own 51%. We will have access to significant financial, operational, and technology resources, enabling us to realize our full potential as a standalone business.

I will continue to lead the organization as CEO of the newly-formed company and couldn’t be more energized about our future and how this transaction moves us forward. We have the right strategy and product portfolio to stay ahead of the adversaries who undermine our digital world. We employ the most talented people steadfast to being our customers’ preferred security partner. And, with this move, we will create the ideal company structure to position McAfee for enhanced focus, innovation and growth. In the end, McAfee will emerge in a position of greater strength, still fully committed to being the best provider in the cybersecurity industry worldwide.

There is no shortage of buzz around cybersecurity these days. Those of us in the industry, and those defending their businesses and families, have the unique privilege of standing on the good side of a fight that is too important to lose. With that in mind, I’m convinced this move marks the beginning of a new future for our customers, partners, and employees:

• For our corporate and government customers, you will benefit from a focused, agile and independent provider further committed to protecting you, recognizing that you require simplicity in your security environment as much as you do effectiveness. With McAfee, you will get a proven player with a leading portfolio – focusing on endpoint and cloud as security control points, combined with actionable threat intelligence, analytics and orchestration – allowing you to detect and respond to more threats faster and with fewer resources. And, you will have a provider with a management team committed to a strategy unveiled nearly a year ago. We are resolute in delivering our product roadmaps, and this new partnership and pure-play status allows us to invest more and execute even faster to enhance our product and services offerings on your behalf.

• For our consumers, who trust us each day to protect the most sensitive and valuable aspects of your digital life, we are as committed as ever to defending you against those meaning you harm. You will have peace of mind being protected by a leader with a history of identifying current and emerging threats – one that will work tirelessly to safeguard you in a virtual world. McAfee will continue to innovate on your behalf, bringing you cybersecurity solutions to protect you across multiple devices.

• For our partners, you will be able to confidently represent one of the most comprehensive, leading portfolios in the industry. As a pure-play provider, McAfee will accelerate the rate of innovation in delivering an integrated portfolio that is increasingly automated and orchestrated. And, with the investment by Intel, you will continue to benefit from Intel’s technology leadership. Rest assured that McAfee will continue to stand behind you, alongside our joint customers, in delivering solutions across the entirety of the threat defense lifecycle.

• Our employees are our most important strategic asset. We have a unique opportunity to create a new future by joining together in architecting the best cybersecurity company in our industry. Today’s announcement validates the strategy we embarked upon last year, and signals a goal of achieving our shared company vision and enhancing our product portfolio for our customers with committed investment, continuity and focus. We are united in our noble cause of protecting consumers, corporations and governments.

TPG is a seasoned technology investor that was attracted to our current momentum and long-term potential. Together, they and Intel are committed to building the best cybersecurity company in the industry – because our customers deserve no less.

McAfee will be that company. Today, we already protect more than a quarter of a billion endpoints, secure the footprint for nearly two-thirds of the world’s 2,000 largest companies, defend more than 200 million consumers, detect more than 400,000 new threats each day and represent more than 7,500 strong of the industry’s most talented cybersecurity professionals. We will deliver even more in the future.

Our customers want the reassurance that our strategy has not changed. It hasn’t. Our partners need to know our commitment will not falter. It won’t. Our employees want to know you are part of a company positioned to thrive. You are.

More details will be available once the transaction closes. I am excited to work with each of you to write the next chapter of the McAfee story. Until then, I want to thank each of you for standing with McAfee and for entrusting us as your cybersecurity partner or provider of choice.

Our future starts now. And the best is yet to come.

Christopher Young

Senior Vice President and General Manager
Intel Security Group

- wong chee tat :)

Missing SM Bus controller

If Device Manager showed SM Bus controller is missing under Windows 7.

How to resolve:

1) Go to the system manufacturer website and locate the exact model of the system

2) Download the intel chipset driver software and install.

Once install, Windows will be rebooted and the error will not showed up again.

What is SM Bus controller?

Basically, SM Bus is System Management Bus that used in personal computers and laptops and servers for low-speed, system management communications. A SMBus controller is integrated into most Intel chipsets. Details: http://www.intel.com/support/chipsets/inf/sb/CS-013541.htm

- wong chee tat :)

Intel, Hitachi to develop solid-state drives

Intel, Hitachi to develop solid-state drives

Posted by Brooke Crothers

Intel will target solid-state drives for server computers in a tie up with Hitachi that was announced Monday night.

Intel solid state drive

(Credit: Intel)

Intel and Hitachi Global Storage Technologies (Hitachi GST) said they will "jointly develop and deliver" Serial Attached SCSI (SAS) and Fibre Channel (FC) solid-state drives (SSDs) for servers, workstations, and storage systems.

While Hitachi is a large supplier of hard disk drives, Intel manufactures and sells consumer and enterprise-class solid-state drives. The enterprise-class X25-E Extreme SSDs that Intel offers now are based on Serial ATA (SATA) technology. As are its consumer-class drives.

Solid-state drives are generally faster than hard-disk drives, particularly at reading data.

"The combination of a leading Enterprise drive supplier with a NAND technology and manufacturing leader will produce world-class solutions in terms of reliability, performance and system compatibility," the companies said in a statement.

The agreement is exclusive to the two companies with the first Serial Attached SCSI and Fibre Channel products expected to be available in early 2010. Both Serial Attached SCSI and Fibre Channel are interfaces typically used in servers.

The companies said the SSDs will not replace hard disk drives but complement them. "The new generation of solid-state drive technology complements existing enterprise-class hard disk drives and is intended for use in storage applications that require extremely high Input/Output Operations Per Second (IOPS) performance and power efficiency," according to the two companies.

Hitachi GST said it will continue to provide its customers with both "traditional" hard-disk drives in addition to the SSDs.

The new SSDs will be "branded and exclusively sold and supported by Hitachi GST" and use Intel NAND flash memory and SSD technology.

Hitachi said it will use its expertise in drive firmware, reliability, qualification and system integration in combination with Intel's technology and manufacturing capabilities.

- wong chee tat :)

IBM's Advanced Chip Fab Available for Hire

IBM's Advanced Chip Fab Available for Hire

Got a cutting edge chip and no one can manufacture it? IBM might have the solution for you with its 45nm foundry.

Maintaining a cutting edge semiconductor foundry is neither easy nor cheap; just ask AMD. The bulk of chip designers don't maintain their own foundries because they are so expensive to maintain and those factories have to be kept up to date or they fall into obsolescence very fast.

The result is most semiconductor firms don't maintain their own fabs, they farm the business out to third parties to do the manufacturing work. While some of these firms, like TSMC and UMC in Taiwan do an adequate job, Intel (NASDAQ: INTC) is considered the gold standard in chip manufacturing.

Well, IBM (NYSE: IBM) intends to change that by offering the first 45 nanometer (nm) Silicon on Insulator (SOI) foundry offering to anyone with a chip to make and sell. IBM claims that 45nm SOI chips will offer up to 30 percent performance improvement or 40 percent power reduction when compared to the industry-standard bulk complementary metal-oxide (CMOS) technology.

"45nm is our 6th generation of SOI technology and is a key driver in many collaborative designs with clients – including networking, storage, gaming and other consumer applications," said Mark Ireland, vice president of IBM Semiconductor Platforms in a statement. "Today's announcement is a progression of this deep experience, providing a world-class resource for the industry to build on this proven, next-generation technology."

IBM has a separate semiconductor alliance, consisting of AMD (NYSE: AMD), Toshiba, Chartered, Freescale, Infineon, Samsung and STMicroelectronics. The alliance is working on SOI technology for the 32nm process node and beyond for a 2010/2011 release.

This, however, is a leap forward, bringing 45nm, the cutting edge of manufacturing technology, to third parties. Up to now, it's been Intel's competitive advantage, and while this offering won't hurt Intel, it does flatten the playing field for competitors somewhat, according to one analyst.

A window of opportunity

"This would certainly narrow the barrier to entry," Dean McCarron, president of chip research firm Mercury Research told InternetNews.com. "Obviously it wouldn't eliminate it because you got to design the chip, and Intel will be moving to 32nm in the next year or so. So the window of opportunity to be directly competitive is relatively narrow."

As part of this news, ARM (NASDAQ: ARMH) announced the availability of its standard cell, memory and I/O libraries for the foundry. The ARM SOI library of physical IP provides the synthesis and implementation flows needed in the manufacturing of SOI-based chips.

McCarron said this is a "fairly cutting edge process" IBM is rolling out, and that would likely bring in business from chip vendors currently looking to other foundries for chip manufacturing. "What we typically see happen is there is a portion of the business that goes to whatever is the best process out there is. So there will be some jumping," he said.

- wong chee tat :)