Intel Security, previously and better known as McAfee, has been sold to private equity firm TPG for $4.2bn, despite Intel paying $7.7bn for it in 2010.

The chip firm will receive $3.1bn in cash as part of the transaction and retain a 49 per cent minority stake. TPG will take control with a 51 per cent stake, and will invest $1.1bn in the company.

Intel Security is based on the McAfee business and was renamed two years ago. The company will revert to the better known McAfee brand, despite John McAfee reportedly suing Intel over the use of his name.

The transaction is expected to close in the second quarter of 2017, and Chris Young, general manager of Intel Security Group, will become CEO of McAfee.

Young described TPG in an open letter to stakeholders as a “seasoned technology investor” that was “attracted to our current momentum and long-term potential”.

He claimed that McAfee currently protects “more than a quarter of a billion endpoints” and more than 200 million consumers, and is present in two thirds of the world’s 2,000 largest companies.

Intel CEO Brian Krzanich claimed that, despite the sale, security “remains important in everything we do at Intel”.

“We will continue to integrate industry-leading security and privacy capabilities in our products from the cloud to billions of smart, connected computing devices,” he added.

Bryan Taylor, a partner at TPG, said that the company had “long identified the cyber security sector, which has experienced strong growth due to the increasing volume and severity of cyber attacks, as one of the most important areas in technology”.

Intel’s acquisition of McAfee Security in 2010 was intended to enable the company to beef up security around PCs and sell McAfee antivirus and other security software around its core business.

However, the combination never worked as the money to be made in the security business became increasingly focused on the data center and cloud computing.

Courtesy-TheInq

Five years ago Intel bought McAfee for $7.7bn acquisition. Two years ago it re-branded it as Intel Security. There was talk about chip based security and how important this would be as the world moved to the Internet of Things.

Now the company has discussed the future of Intel Security with bankers, including potentially the outfit. The semiconductor company has been shifting its focus to higher-growth areas, such as chips for data center machines and Internet-connected devices, as the personal-computer market has declined.

The security sector has seen a lot of interest from private equity buyers. Symantec said earlier this month it was acquiring Web security provider Blue Coat for $4.65 billion in cash, in a deal that will see Silver Lake, an investor in Symantec, enhancing its investment in the merged company, and Bain Capital, majority shareholder in Blue Coat, reinvesting $750 million in the business through convertible notes.

However Intel’s move into the Internet of Things does make it difficult for it to exit the security business completely. In fact some analysts think it will only sell of part of the business and keep some key bits for itself.

Courtesy-Fud

The lab was used by Qualcomm to develop Interferometric Modulator Display and Apple Insider claims it is now being used to develop thinner, lighter, brighter and more energy-efficient screens.

The lab employs at least 50 engineers and has recruited talent from display maker AU Optronics and Qualcomm. Outside the lab there is no signage or much to indicate that the Fruity Cargo Cult has assumed control.

Government records show that the building is registered to Apple Taiwan, and a staff in the building were observed wearing Apple ID badges.

Bloomberg thinks Apple wants to “reduce reliance on the technology developed by suppliers such as Samsung, LG, Sharp and Japan and instead “develop the production processes in-house and outsource to smaller manufacturers such as Taiwan’s AU Optronics or Innolux.

Apple currently uses LCD screens in its Macs and iOS devices and an OLED display for Apple Watch and the new lab was where Qualcomm tried to develop to develop its own Mirasol displays.

Mirasol use a different technology to backlit LCDs or OLED. It uses an array of microscopic mirror-like elements that can reflect light of a specific colour. It does not need a backlight and only uses energy when being switched on or off, like E-Ink.

The downside to IMOD has historically been that it reproduces flat, unsaturated colours, a problem that may be possible to fix. Qualcomm introduced a Toq smartwatch with an IMOD screen, but the device flopped.

Qualcomm took a $142 million charge on its Mirasol display business and a year ago there were rumours Qualcomm was selling off its Longtan Mirasol panel plant to TSMC.

What appears to have happened is that Jobs Mob might have bought more than just the facility, and instead has some interest in using Mirasol IMOD technology which could offer an advanced technological breakthrough in enabling a new class of low-power displays for use in phones, tablets or wearables.

Courtesy-Fud